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5 - The Market for Lemons

Cyber Compliance & Beyond

Release Date: 08/06/2024

8 - The CMMC Rule … Finally show art 8 - The CMMC Rule … Finally

Cyber Compliance & Beyond

CMMC’s security requirements are not new. What is new about CMMC is the level of rigor. With the recent publication of the CMMC rule, DoD is ever closer to requiring contractors to comply with CMMC security requirements and back them up with an assessment. The CMMC Rule, like any new regulation, is packed with details. Details that have been rumored, speculated, and drafted. Now that they’re known and final, we’re here to help you see clearer. In today’s episode, our host, Cole French becomes the expert guest. As Director of Cybersecurity Services and CMMC Capability Lead at Kratos,...

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7 - AI and Cyber Compliance show art 7 - AI and Cyber Compliance

Cyber Compliance & Beyond

AI is bringing speed and velocity never seen before. Some studies show that the output is the equivalent to what 35-40 humans can produce. This speed and velocity is applied to countless use cases across just about every economic sector. Cybersecurity compliance is laden with repetitive, redundant, and time-consuming manual tasks. While humans bring nuanced ingenuity and problem-solving capabilities, we are prone to errors, especially across such repetitive, redundant, and time-consuming tasks. Worse, cybersecurity compliance requirements are far from standardized, though there is a tremendous...

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6 - Supply Chain Security show art 6 - Supply Chain Security

Cyber Compliance & Beyond

Supply chain security is not new, though it certainly feels as though it is. Thanks to globalization, supply chains are ever growing in their depth, complexity, and interconnectedness. Unfortunately, like so many other systems, security of supply chains hasn’t been at the top of the list of things to consider when evaluating supply chains. Understandably, economics led the way. A supply chain exists to foster economic growth and profit-making. None of these are bad but there’s a painful irony: the less security is considered, the greater the costs, which drives down growth and...

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5 - The Market for Lemons show art 5 - The Market for Lemons

Cyber Compliance & Beyond

IT support is tricky for most businesses, especially for those not in the IT business. Thus, IT is a cost of doing business and a high cost at that. High costs drive down profits. Less profit makes it harder for businesses to invest in the products or services that they’re making and selling. Retaining IT staff is even more difficult. This is due to the extremely low unemployment rate and the higher-than-average annual salary. These two factors almost guarantee that IT staff hired by non-IT businesses will eventually get a better offer some place else. To mitigate the problem with IT staff,...

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4 - Vulnerability Management show art 4 - Vulnerability Management

Cyber Compliance & Beyond

Vulnerabilities are everywhere and on every IT asset within an organization. This makes vulnerability management one of the most important – if not the most important – risk mitigation activities an organization undertakes. But, the complexities inherent in many organizations combined with the sheer number of vulnerabilities leaves many not knowing where to even begin when it comes to vulnerability management. On today’s episode, we’ll demystify vulnerability management by defining some context, outlining an effective vulnerabilities management program, discussing potential challenges,...

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3 - Export Compliance Overlap show art 3 - Export Compliance Overlap

Cyber Compliance & Beyond

The number of compliance frameworks is seemingly endless. The lack of standards is problematic enough. Even more problematic, however, is how the compliance frameworks overlaps with one another. When it comes to International Trade and Export Compliance, the problem is overlap is accentuated by the fact that there is not a definitive ‘framework’ for export compliance. Nearly everything is determined on a case-by-case basis. Today’s guest is Sara Hougland, Director of Trade Compliance here at Kratos. During our conversation, we cover export compliance at a high level, discuss the concept...

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2 - Encryption, FIPS 140, and Compliance show art 2 - Encryption, FIPS 140, and Compliance

Cyber Compliance & Beyond

Some recent estimates have postulated that data is now the world’s most valuable asset. Unlike other assets, like oil, for example, data proliferates on a staggering scale. In other words, it doesn’t seem to be finite, subject the law of scarcity. This hammers home the importance of answering the question that each of you are wrestling with: how do I protect all this data? A simple answer to this question is encryption. But any simple answer has you immediately asking more questions: what encryption should I use? How should I configure it? How can I be sure it is adequate? And, perhaps...

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1 - FedRAMP Exception Cases show art 1 - FedRAMP Exception Cases

Cyber Compliance & Beyond

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More Episodes

IT support is tricky for most businesses, especially for those not in the IT business. Thus, IT is a cost of doing business and a high cost at that. High costs drive down profits. Less profit makes it harder for businesses to invest in the products or services that they’re making and selling. Retaining IT staff is even more difficult. This is due to the extremely low unemployment rate and the higher-than-average annual salary. These two factors almost guarantee that IT staff hired by non-IT businesses will eventually get a better offer some place else. To mitigate the problem with IT staff, businesses have turned to outsourcing to managed service providers or external service providers. By doing so businesses are giving up the information necessary to make well-informed choices, instead choosing to trust the IT service providers they’re buying from. This asymmetry of information creates a market phenomenon called a market for lemons. A market for lemons phenomenon exists when sellers hold more knowledge than buyers. Because buyers are price-sensitive and are only willing to pay a certain price the market becomes distorted such that high-quality sellers are gobbled up quickly and the market is left with lemons. In sum, the market for lemons works to drive quality out of the market.

Today’s guest is Andy Paul. Andy is an engineer, data privacy professional and a Certified CMMC Assessor from Gray Analytics with more than 15 years of experience helping firms design, implement and secure everything from globally spanning networks to small boutique and highly specified and regulated networks. During our conversation, we discuss the current situation in the IT services market, the market for lemons phenomenon, how the CMMC ecosystem is setup to alleviate the problems that markets for lemons introduce, and how you can outsource confidently.

Resources:

Links:

·       George Akerlof – The Quarterly Journal of Economics, Vol. 84, No. 3 (Aug. 1970), pp. 488-500

·       Cyber AB Marketplace