Belmont State Bank Is A Large Bank With Hundreds Of

Belmont State Bank Is A Large Bank With Hundreds of

Perform a risk assessment. The steps of the risk assessment include: 1. Develop risk measurement criteria 2. Inventory IT assets 3. Identify threats 4. Document existing controls 5. Identify improvements

Paper For Above instruction

Risk assessment is a fundamental process in ensuring the security and integrity of information systems within organizations such as Belmont State Bank. Given the bank's extensive network infrastructure, including hundreds of branches connected via dedicated circuits and MPLS, as well as various client computers, ATMs, servers, and transaction processing systems, a comprehensive risk assessment becomes vital to identify vulnerabilities, mitigate risks, and strengthen security controls.

1. Developing Risk Measurement Criteria

The first step involves establishing clear risk measurement criteria tailored to the bank’s operational context. These criteria help evaluate the likelihood and impact of potential threats. For Belmont State Bank, criteria should include factors such as data confidentiality, operational continuity, financial impact, regulatory compliance, and reputational damage. For example, threats compromising online banking transactions or data integrity might be assigned higher risk scores based on their potential financial loss and regulatory repercussions.

2. Inventory of IT Assets

Comprehensive inventorying of IT assets is essential. In the bank’s environment, assets include branch servers storing daily transaction data, client computers, ATMs, central computer systems, communication links (dedicated circuits and MPLS), and security controls such as password systems. Each asset should be documented with details such as hardware specifications, software versions, network configurations, and operational sensitivities. This inventory forms the foundation for identifying vulnerabilities and prioritizing protection measures.

3. Identification of Threats

Potential threats to Belmont State Bank’s IT environment range from external cyber-attacks to insider threats. External threats might include malware targeting transaction data, hacking attempts on ATM networks, or interception of data transmitted over MPLS links. Internally, threats could involve unauthorized access by employees, compromised credentials such as tellers’ four-digit passwords, or physical threats to ATM and server hardware. Additional threats include natural disasters affecting branches, loss of data due to hardware failure, or malicious social engineering attacks.

4. Documentation of Existing Controls

The bank employs several existing controls meant to mitigate identified risks. The use of transaction-coded teller computers limits transaction types to authorized operations, reducing insider threat risks. Password protection for tellers provides a basic level of access control, though four-digit PINs might be vulnerable to brute-force or social engineering attacks. Network security measures include dedicated circuits and MPLS, which provide isolation and encryption capabilities. Additionally, transaction data is transmitted several times during the day, suggesting some level of redundancy and data backup. Physical security controls, such as surveillance in branches and secure server rooms, are also vital to protect hardware assets.

5. Identification of Improvements

Based on the above controls, improvements can be made to enhance security. First, upgrading password protocols from simple four-digit codes to multifactor authentication would significantly reduce unauthorized access. Implementing intrusion detection and prevention systems (IDPS) on network links would help identify and block malicious activities. Encryption of data in transit over MPLS links and at rest on servers would bolster confidentiality. Regular security audits and employee training programs can mitigate insider threats. Additionally, establishing comprehensive incident response plans and disaster recovery procedures will prepare the bank for potential breaches or physical damages.

Conclusion

The risk assessment for Belmont State Bank highlights the importance of systematic evaluation and continuous improvement to preserve the security and reliability of its banking operations. Developing clear risk criteria, maintaining detailed asset inventories, identifying current threats, evaluating controls, and proactively implementing improvements are essential steps. As banking technologies evolve and cyber threats grow more sophisticated, ongoing risk management remains vital to ensure customer trust, regulatory compliance, and operational resilience.

References

  • Anderson, R. (2020). Security Engineering: A Guide to Building Dependable Distributed Systems. Wiley.
  • National Institute of Standards and Technology (NIST). (2018). Framework for Improving Critical Infrastructure Cybersecurity. NIST Cybersecurity Framework.
  • ISO/IEC 27001:2013. (2013). Information technology — Security techniques — Information security management systems — Requirements. International Organization for Standardization.
  • Mitnick, K. D., & Simon, W. L. (2011). The Art of Deception: Controlling the Human Element of Security. Wiley.
  • Chen, H., & Zhao, X. (2020). “Securing Banking Transactions in Cloud Environments.” Journal of Financial Crimes, 27(1), 89-104.
  • O’Reilly, T. (2020). Cybersecurity for Banks: Risk Management and Regulatory Landscape. Routledge.
  • European Central Bank. (2019). Cyber Resilience in the Financial Sector. ECB Publications.
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  • Fitzgerald, P., & Dennis, A. (2021). Business Data Communications and Networking. McGraw-Hill Education.
  • Burnett, M., & Yeo, H. (2020). “Implementing Multi-layer Security Controls in Banking Infrastructure.” International Journal of Information Management, 50, 329-339.

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