Verizon MSI leads towards a standardized framework for measuring cyber risk, plus an objective contractual definition of what constitutes a cyber event using independent and objective trusted data. It provides early warning detection of data integrity compromise using a real time monitoring strategy operating with the bounds of agreed baselines. For underwriters, general counsels and CISOs this acts as undisputed evidence of what occurred when.
Enabling the fourth industrial revolution, Industrial IoT (IIoT) is changing how businesses operate – massively increasing their use of sensing, edge processing and intelligence technologies to deliver better outcomes at a lower cost, while optimizing the use of resources. For example, in industrial settings, IIoT is used to determine and predict the potential for equipment failure to reduce maintenance latencies and the high costs of equipment malfunction on product lines. Ambitious planned cities like Project NEOM are betting heavily on IIoT to enable efficient automation and distribution forecasting for energy as well as safe and secure autonomous transport.
Gartner defines IIoT as: Integrated software capabilities spanning efforts to improve asset management decision making, as well as operational visibility and control for plants, depots, infrastructure and equipment within asset-intensive industries.
The consequence of this revolution is an overhaul in digitization and a convergence of Operational Technology (OT) and Information Technology, requiring organizations and networks that traditionally have not been connected to securely share information and decisions, often across the globe, simultaneously on different platforms and infrastructure.
With the exponential increase in sensors deployed on critical infrastructure, attackers now have to access these networks and security becomes ever more critical. When everything is connected, threat vectors are multiplied by orders of magnitude.
An example of a managed security service built on KSI technology is Verizon’s Machine State Integrity (MSI) service, aiming to boost security for physical and virtual machines. While controllers, routers, access points, gateways, sensors and edge computing environments are part of a distributed IIoT platform, the MSI service at the network edge provides detection and continuous validation of the true state of these machines and sensors in real time, at scale and with mathematical certainty.
IIoT distributed platforms will depend on securing sensor networks across networks, platforms and decision applications.
MSI creates an immutable, fully verifiable chain of events based on the digital twin of the actual machine state rather than post processed logs. These digital twins are exportable across applications, federated boundaries and environments. Furthermore, asset reporting and device management can be brokered at scale, providing policy enforcement and rule services on tamper and/or attack handling.
Verizon Machine State Integrity for IIoT is, “a managed security solution that captures concise machine state information and continuously monitors the actual state of machines in an environment, significantly facilitating and reducing time to threat detection. It accurately identifies, analyzes and flags changes to help you control risk.”
Once cryptographically sealed with the KSI Blockchain, the digital twins are used to continuously validate the endpoint. This information can be shared across distributed applications, platforms, boundaries and hybrid environment cyber services for remediation and service continuity (they don't need a trust relationship for asset inspection and verification).
Industrial IOT and cyber-insurance
The insurance industry is facing many challenges in dealing with cyber risk and is very conservative and cautious with current products that have a long way to go in order to meet client needs. The major challenges are around the claims submission process, accumulation risk across portfolios, data compromise chain reactions in supply chains and the tardy detection of data integrity breaches leading to ransom-ware and data extortion.
Coupled with this is the need for richer trusted and granular datasets available to model the risk in a bespoke manner for commercial clients leading to innovative solutions that address IOT protection gaps, data compromise CBI, IP Theft and GDPR (privacy compliance).
The importance of FNOL (First Notice of Loss) and early reserving in the cyber claims submission process to address liability, subrogation and litigation issues early in the claims process is paramount. Similar with IBNR (incurred but not reported) claims that are not booked and hence not reserved. It can turn a profitable underwriting year into a loss and in large cases could lead to insolvency or impact balance sheet strength. This is prominent in cyber because of accumulation risk and lack of detection especially as time from data compromise to detection currently averages from 145 to 520 days. The reduced time to detection by Verizon MSI will have a significant shift effect on the current landscape. Simultaneously it will reduce aggregate risk as the near real time detection will also mitigate accumulation across multiple vendors can be seen as an unambiguous proof of breach and correlate all claims back to an actual proximate cause which is fundamental.
In short, Verizon MSI provides early warning detection of data integrity compromise using a mathematical immutable proof of state governance with a near real time monitoring strategy operating with the compliance bounds of agreed baselines. For the underwriter, general counsels and the CISO this is undisputed evidence of what occurred when.