BOSTON/WASHINGTON, May 27 (Reuters) - Unknown hackers have broken into the security networks of Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) and several other U.S. military contractors, a source with direct knowledge of the attacks told Reuters.
They breached security systems designed to keep out intruders by creating duplicates to "SecurID" electronic keys from EMC Corp's (EMC.N: Quote, Profile, Research, Stock Buzz) RSA security division, said the person who was not authorized to publicly discuss the matter.
It was not immediately clear what kind of data, if any, was stolen by the hackers. But Lockheed's and other military contractor networks house sensitive data on future weapons systems as well as military technology currently used in battles in Iraq and Afghanistan.
Like natural ecosystems, the cyber ecosystem comprises a variety of diverse participants – private firms, non‐profits, governments, individuals, processes, and cyber devices (computers, software, and communications technologies) – that interact for multiple purposes. Today in cyberspace, intelligent adversaries exploit vulnerabilities and create incidents that propagate at machine speeds to steal identities, resources, and advantage. The rising volume and virulence of these attacks have the potential to degrade our economic capacity and threaten basic services that underpin our modern way of life.
The approach to managing operational risk differs from that applied to other types of risk, because it is not used to generate profit. In contrast, credit risk is exploited by lending institutions to create profit,market risk is exploited by traders and fund managers, and insurance risk is exploited by insurers. They all however manage operational risk to keep losses within their risk appetite - the amount of risk they are prepared to accept in pursuit of their objectives. What this means in practical terms is that organisations accept that their people, processes and systems are imperfect, and that losses will arise from errors and ineffective operations. The size of the loss they are prepared to accept, because the cost of correcting the errors or improving the systems is disproportionate to the benefit they will receive, determines their appetite for operational risk. Events such as the September 11 terrorist attacks, rogue trading losses at Société Générale,Barings, AIB and National Australia Bank serve to highlight the fact that the scope of risk management extends beyond merely market and credit risk.