The recent spate of IT glitches and ‘power outages’ at British Airways which caused the UK’s national carrier to cancel all its flights worldwide at the start of May bank holiday along with the WannaCry ransomware attack which ground the National Health Service to a halt have exposed again the importance of IT systems in today’s business. The complexity of these IT systems, the number of vulnerabilities that exist in critical software used by critical infrastructure sectors such as the NHS, airlines, telecom operators has made headlines once more.
Panel Discussion at the 2016 Software Risk Summit
Software risk has historically been overlooked as a security concern by business leaders, and companies have paid a high price as a result. Remember the JPMorgan hack of 2014? That cost the bank more than $6 billion. RBS has paid £231 million for their IT failures as of two years ago. The Target breach? The retailer posted a write down of $152 million. Or, more recently, Jeep controls being taken over by hackers, and a similar incident with Toyota-Lexus having to fix a software bug that disabled cars’ GPS and climate control systems? That costs the manufacturers valuable consumer confidence points and can seriously damage sales.
So I was thrilled to know that the topic for the first annual Software Risk Summit in New York was indeed just that, software risk. I had the pleasure of moderating the panel discussion with esteemed guests from BNY Mellon, the Software Engineering Institute at Carnegie Mellon, the Boston Consulting Group and CAST. But beforehand, I was able to sit-in on the keynote by Rana Foroohar.
On March 15, CISQ hosted the Cyber Resilience Summit in Washington, D.C., bringing together nearly 200 IT innovators, standards experts, U.S. Federal Government leaders and attendees from private industry. The CISQ quality measures have been instrumental in guiding software development and IT organization leaders concerned with the overall security, IT risk management and performance of their technology. It was invigorating to be amongst like-minded professionals who see the value in standardizing performance measurement.
Software Risk Management in Digital Transformation was the focus during the 4th edition of the Information Technology Forum, hosted by International Institute of Research (IIR). Massimo Crubellati, CAST Italy Country Manager, discussed how Digital Transformation processes are changing the ICT scenario and why software risk management and prevention is mandatory.
Massimo shared our recipe for Digital Governance evolution: including a specific ICT Risk chapter in the design of the governance structure of the digital transformation, whose most relevant aspect is to determine which methods and through which key performance indicators to measure the operational risk inherent in the application portfolio. Measurement needs to be continuous and structural, it must include the assessment of application assets inherent weaknesses, through the analysis of correlations between the layers composing them. Thus obtaining, not only an effective prevention of direct damage ensuring the service resilience, but a reduction in maintenance and application management costs.
IT leaders from throughout the federal government discussed the value of how software measurement can positively impact their development process at CAST’s recent Cyber Risk Measurement Workshop in Arlington, VA – just outside of the Washington, D.C. area. The event brought together more than 40 IT leaders from several governmental agencies, including the Department of Defense and Department of State, system integrators and other related organizations. The group shared their experiences in how their respective organizations are driving value to end users and taxpayers.
Measuring and managing software quality is not just about compliance with government mandates, but rather around the proposition that strong software quality, security and sustainability are paramount. However, compliance remains essential. Three primary points around software compliance voiced by attendees were:
Government mandates point to the fact that software must have a measurement component
Industry standards, such as the Consortium for IT Software Quality (CISQ) and The Object Management Group (OMG) are available and should be leveraged
Technology solutions exist to help public sector firms address these mandates
All businesses recognize the importance of developing software within a budget. But how do you put together that IT budget in the first place? CAST has worked with a successful CIO to create a guideline of best practices (>Click Here To Download It<). Saad Ayub, formerly CIO at Scholastic and The Hartford, suggests nine ways analytics supports better IT budgets.