Archive for the ‘Business Process Risk Management’ Category

Trojan Linked to 2008 Spanair Plane Crash

Monday, August 23rd, 2010

plane_lockAuthorities investigating the recent 2008 plane crash of Spanair flight 5022 discovered that there is a probability that the central computer system that’s used to monitor technical issues with the plane was infected with malware.

The plane, a McDonnell Douglass MD-82,  held 172 passengers and crew, crashed upon takeoff rolling to the right and split into two, exploding almost immediately.  154 people died and only 18 survived the crash, which was Spain’s deadliest in 25 years.

According to a preliminary report by the U.S. National Transportation Safety Board, the aircraft took off with its flaps and slats retracted, and there was no alarm that notified of the issues because the central computer system that typically delivers the power and message to the take-off warning system had failed.  In addition, there were two smaller earlier events that  also were not reported by the system.  In short, built-in safeguards that would have prevented the crash, failed to do so.

Head researcher, Jamz Yaneeza for Trend Micro indicated that malware on the infected computer system was a type of Trojan horse.  While there are a number of ways the malware could have entered the computers system, the most likely scenario is it was transferred via a USB stick.  This type of transfer of malicious code is not new to the transportation, or hi-tech industry, as the International Space Station was also infected in this manner in 2008.  Another possibility is that the infection occurred through a remote VPN connection.

A complete report is due in December of 2010 regarding the full investigation.  Researchers have indicated that a preliminary investigation indicates that it does not appear that the malware was specifically intended for the planes computer systems.

However, what this does bring to light is the bridging of the gap between two distinct types of risk management that historically have been on either end of the ravine.  Conventional risk management such as employee health and safety, transportation safety, process safety, and environmental protection are typically managed by a “risk manager” at most larger organizations while the cyber security is managed by a “technical officer” (or similar designation).

As technology develops, and cyber criminals begin to expand their operations, directed attacks towards this type of exposure can and should be expected, especially with regards to extortion and blackmail.  This incident is a classic example where the health and safety of employees, the public, owned materials and vehicles, company image and network security were all adversely impacted.

In this case, it’s likely that malware was not the direct cause for the flaps to be at the dangerous 0 degree angle, but they were a contributing factor to the crash occurring since the computer systems did not respond and communicate accordingly as they should have when alarming on the  problem.  It is certainly possible in the future that we’ll see more customized malicious attempts to hijack planes, vehicles and even automated equipment run by computers in an attempt to create harm or havoc for financial or terrorist gain.

UPDATE:

New information is now surfacing 3 days after this initial story ran at MSNBC and TechNewsDaily.  Apparently the internal Spanair Report that reported many of these issues and came to some of the determinations outlined in this blog may not have been entirely accurate according to security experts around the web.  So while the accuracy of this initial report is still up in the air, the overall message and threat of malware and cyber security concerns with integrated systems is still valid.  As technology develops, so too will the criminals and malicious entities that take advantage of it.

OSHA Issues Final Rule on Cranes and Derricks in Construction

Wednesday, July 28th, 2010

craneAs of July 28, 2010 the Office of the Federal register has posted a special filing of the final rule for OSHA regulation 29 CFR 1926 – Subpart N – Cranes and Derricks in Construction.  The change in this rule came about due to the original rule (written in 1971) becoming more and more obsolete as new technologies have developed in the last 39 years.  For example, in 1971 hydraulic cranes were very rarely used in construction, whereas today they are considered the most prevalent form of lifting.  Additionally, with the recent crane accidents, injuries and deaths in the last several years, OSHA was pushed and responded by updating the regulation.

The rule becomes effective 90 days after August 9, 2010, the date the final rule will be published in the Federal Register. Certain provisions have delayed effective dates ranging from 1 to 4 years.

The final standard addresses additional advancements in design, related hazards and qualifications of employees which are needed to operate this type of machinery safely.  Also, the new standard will address the 4 main causes of worker deaths related to cranes and derricks: electrocution, crushed by parts of the equipment, struck by the equipment/load and falls.  Some highlights of the updated rule include:

  • Employers must assess the ground conditions prior to performing a hoist.
  • Employers must comply with local and state operator licensing requirements which meet the minimum criteria specified in § 1926.1427.
  • Employers must pay for certification or qualification of their currently un-certified or unqualified operators.
  • Written certification tests may be administered in any language understood by the operator candidate.
  • When employers with employees qualified for power transmission and distribution are working in accordance with the power transmission and distribution standard (§ 1910.269), that employer will be considered in compliance with this final rule’s requirements for working around power lines.
  • Employers must use a qualified rigger for rigging operations during assembly/disassembly.
  • Employers must perform a pre-erection inspection of tower cranes.

Additional compliance assistance will be released by OSHA in August of 2010 to assist construction companies with the additional regulations being set for for cranes and derricks.  BP RiskTools policies, programs and guidance documents will be updated to reflect the new rule as it becomes law.  To learn more about how to obtain our Environmental Health & Safety/Business Process risk management tools and software solutions, please Contact Us.

To view a full copy of the regulatory text, Download the PDF.

Dodd-Frank Act Signed into Law

Thursday, July 22nd, 2010

President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (to be aptly named the “Dodd-Frank Act for short) into law on Wednesday July 21, 2010.  The complete act covers every bit of 2,300 pages and has bearing on almost every single financial services company and industry in the country.

The goals and basis of the Act include restoring “public confidence” in the United States financial system, preventing future crisis and predicting and foreshadowing future financial asset bubble inflations.  In addition, additional regulation of the financial services industry will spur change in the way financial institutions do business.

To read the bill in it’s entirety Click Here.

Below are some quick links to pertinent Business Process and Cyber Security related legislation within the Act:

Section 929I: Protecting Confidentiality of Materials Submitted to the Commission

Section 1071: Small Business Data Collection

Section 1082: Amendments to the Privacy Act of 1974

Section 1093: Amendments to the Gramm-Leach-Bliley Act

Section 1494: Study of Effect of Drywall Presence on Foreclosures

Section 1503: Reporting Requirements Regarding Coal or Other Mine Safety

Whether you manage Environmental Health & Safety or your businesses Cyber Security Risk, the Dodd-Frank Act will have an impact on your risk management efforts.  Continue to check back and read our blog about current events, regulations and risk identification, mitigation and controls to support your business operations.