ISACA Now Blog

Knowledge & Insights > ISACA Now > Posts > How to Approach Blockchain Deployment While Mitigating Risk

How to Approach Blockchain Deployment While Mitigating Risk

Varun Ebenezer, CISA, CBP, Senior IT Audit Manager, BMO Financial Group, USA
| Posted at 10:02 AM by ISACA News | Category: Audit-Assurance | Permalink | Email this Post | Comments (0)

Varun EbenezerBlockchain has emerged as one of the most promising technological developments of the past decade. Originating from the digital currency Bitcoin, blockchain employs use of a distributed ledger to provide consensus through its decentralized participants, eliminating the need for a central authority. This advancement has the potential to transform several key industries, much like the rise of the internet did in the 1990s.

Blockchain technology has a multitude of benefits, such as enabling peer-to-peer transactions, transparency, cost reduction, speed, fraud mitigation, and security by design. However, as is the case with any emerging technology, there are several risks with blockchain that should be considered by organizations that plan to use it. There are currently no universally accepted standards in place for blockchain, nor is there clear guidance available from a regulatory perspective. Due to these conditions, caution must be used when deploying blockchain technology at an enterprise level.

ISACA has developed a Blockchain Preparation Audit Program to provide organizations with a framework to manage blockchain. The program covers six key areas: pre-implementation, governance, development, security, transactions and consensus.

These areas touch upon the primary risks that are associated with use of blockchain, and aim to achieve the following objectives:

  • Assess an organization’s blockchain solution to determine whether it is adequately designed and operationally effective
  • Identify blockchain risks which could result in reputational and/or material impact
  • Provide organizations with a holistic perspective on blockchain technology, with consideration for both technical and non-technical factors

When properly deployed, blockchain can provide substantial benefits. However, blockchain is not practical for every organization, and management must ensure that its use supports business objectives accordingly. The following are examples of adverse impacts that can occur when a blockchain solution does not align with business objectives:

  • Impractical use cases that are in misalignment with organizational strategy
  • Inadequate deployment that results in wasted time and resources
  • A blockchain solution that does not function properly
  • Potential for noncompliance with industry regulators
  • Vulnerabilities that could impact source code, endpoints, and sensitive data

In addition to the risks discussed above, the blockchain audit/assurance preparation program also will allow organizations to consider other relevant questions. Some of these questions include:

  • Was there a business case assessment created for the use of blockchain? Was it approved by key stakeholders?
  • What were some practical use cases that the organization was looking to use blockchain for?
  • What type of blockchain (permissioned vs. permission-less) is the organization using?
  • Are blockchain wallet private keys being managed by a clearly identified custody approach?
  • How is the organization acquiring the required development expertise to support the blockchain solution?
  • How were vendors selected to support the organization’s blockchain solution? What due diligence processes were followed?
  • Does management adequately understand blockchain technology, and are they providing effective oversight?
  • What is the approach being used to manage applicable regulatory risks?

Editor’s note: The Blockchain Preparation Audit Program is complimentary for ISACA members.

Copy Item to All Language Codes
Lists/SqtResources/AllItems.aspx
0x0
0x0
ContentType
0x01009AF1BC4E56474a80B49512D1B30D6EEC
225
Manage Subscriptions
/_layouts/images/ReportServer/Manage_Subscription.gif
/Knowledge-Center/Blog/_layouts/ReportServer/ManageSubscriptions.aspx?list={ListId}&ID={ItemId}
0x80
0x0
FileType
rdl
350
Manage Data Sources
/Knowledge-Center/Blog/_layouts/ReportServer/DataSourceList.aspx?list={ListId}&ID={ItemId}
0x0
0x20
FileType
rdl
351
Manage Parameters
/Knowledge-Center/Blog/_layouts/ReportServer/ParameterList.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
352
Manage Processing Options
/Knowledge-Center/Blog/_layouts/ReportServer/ReportExecution.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
353
View Report History
/Knowledge-Center/Blog/_layouts/ReportServer/ReportHistory.aspx?list={ListId}&ID={ItemId}
0x0
0x40
FileType
rdl
354
View Dependent Items
/Knowledge-Center/Blog/_layouts/ReportServer/DependentItems.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rsds
350
Edit Data Source Definition
/Knowledge-Center/Blog/_layouts/ReportServer/SharedDataSource.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rsds
351
View Dependent Items
/Knowledge-Center/Blog/_layouts/ReportServer/DependentItems.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
350
Manage Tapthrough Reports
/Knowledge-Center/Blog/_layouts/ReportServer/ModelTapThrough.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
352
Manage Model Item Security
/Knowledge-Center/Blog/_layouts/ReportServer/ModelItemSecurity.aspx?list={ListId}&ID={ItemId}
0x0
0x2000000
FileType
smdl
353
Regenerate Model
/Knowledge-Center/Blog/_layouts/ReportServer/GenerateModel.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
354
Manage Data Sources
/Knowledge-Center/Blog/_layouts/ReportServer/DataSourceList.aspx?list={ListId}&ID={ItemId}
0x0
0x20
FileType
smdl
351
Load in Report Builder
/Knowledge-Center/Blog/_layouts/ReportServer/RSAction.aspx?RSAction=ReportBuilderModelContext&list={ListId}&ID={ItemId}
0x0
0x2
FileType
smdl
250
Edit in Report Builder
/_layouts/images/ReportServer/EditReport.gif
/Knowledge-Center/Blog/_layouts/ReportServer/RSAction.aspx?RSAction=ReportBuilderReportContext&list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
250
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XsnLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
FileType
xsn
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.2
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.3
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.4
255
View in Web Browser
/_layouts/images/ichtmxls.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1
0x0
0x1
FileType
xlsx
255
View in Web Browser
/_layouts/images/ichtmxls.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1
0x0
0x1
FileType
xlsb
255
Snapshot in Excel
/_layouts/images/ewr134.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1
0x0
0x1
FileType
xlsx
256
Snapshot in Excel
/_layouts/images/ewr134.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1
0x0
0x1
FileType
xlsb
256

Comments

There are no comments yet for this post.
Copy Item to All Language Codes
Lists/SqtResources/AllItems.aspx
0x0
0x0
ContentType
0x01009AF1BC4E56474a80B49512D1B30D6EEC
225
Manage Subscriptions
/_layouts/images/ReportServer/Manage_Subscription.gif
/Knowledge-Center/Blog/_layouts/ReportServer/ManageSubscriptions.aspx?list={ListId}&ID={ItemId}
0x80
0x0
FileType
rdl
350
Manage Data Sources
/Knowledge-Center/Blog/_layouts/ReportServer/DataSourceList.aspx?list={ListId}&ID={ItemId}
0x0
0x20
FileType
rdl
351
Manage Parameters
/Knowledge-Center/Blog/_layouts/ReportServer/ParameterList.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
352
Manage Processing Options
/Knowledge-Center/Blog/_layouts/ReportServer/ReportExecution.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
353
View Report History
/Knowledge-Center/Blog/_layouts/ReportServer/ReportHistory.aspx?list={ListId}&ID={ItemId}
0x0
0x40
FileType
rdl
354
View Dependent Items
/Knowledge-Center/Blog/_layouts/ReportServer/DependentItems.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rsds
350
Edit Data Source Definition
/Knowledge-Center/Blog/_layouts/ReportServer/SharedDataSource.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
rsds
351
View Dependent Items
/Knowledge-Center/Blog/_layouts/ReportServer/DependentItems.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
350
Manage Tapthrough Reports
/Knowledge-Center/Blog/_layouts/ReportServer/ModelTapThrough.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
352
Manage Model Item Security
/Knowledge-Center/Blog/_layouts/ReportServer/ModelItemSecurity.aspx?list={ListId}&ID={ItemId}
0x0
0x2000000
FileType
smdl
353
Regenerate Model
/Knowledge-Center/Blog/_layouts/ReportServer/GenerateModel.aspx?list={ListId}&ID={ItemId}
0x0
0x4
FileType
smdl
354
Manage Data Sources
/Knowledge-Center/Blog/_layouts/ReportServer/DataSourceList.aspx?list={ListId}&ID={ItemId}
0x0
0x20
FileType
smdl
351
Load in Report Builder
/Knowledge-Center/Blog/_layouts/ReportServer/RSAction.aspx?RSAction=ReportBuilderModelContext&list={ListId}&ID={ItemId}
0x0
0x2
FileType
smdl
250
Edit in Report Builder
/_layouts/images/ReportServer/EditReport.gif
/Knowledge-Center/Blog/_layouts/ReportServer/RSAction.aspx?RSAction=ReportBuilderReportContext&list={ListId}&ID={ItemId}
0x0
0x4
FileType
rdl
250
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XsnLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
FileType
xsn
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.2
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.3
255
Edit in Browser
/_layouts/images/icxddoc.gif
/Knowledge-Center/Blog/_layouts/formserver.aspx?XmlLocation={ItemUrl}&OpenIn=Browser
0x0
0x1
ProgId
InfoPath.Document.4
255
View in Web Browser
/_layouts/images/ichtmxls.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1
0x0
0x1
FileType
xlsx
255
View in Web Browser
/_layouts/images/ichtmxls.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&DefaultItemOpen=1
0x0
0x1
FileType
xlsb
255
Snapshot in Excel
/_layouts/images/ewr134.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1
0x0
0x1
FileType
xlsx
256
Snapshot in Excel
/_layouts/images/ewr134.gif
/Knowledge-Center/Blog/_layouts/xlviewer.aspx?listguid={ListId}&itemid={ItemId}&Snapshot=1
0x0
0x1
FileType
xlsb
256
You must be logged in and a member to post a comment to this blog.