Tag Archives: GFC

Data security – is psychology more important than technology?

We had a discussion with a prospect for a DLP (data loss prevention) system) that started with discussing the pros and cons of various DLP solutions (Verdasys, Mcafee DLP, Websense, Fidelis Security) and finished with a drill-down into how they can build a business case to acquire and implement data security technology. After a very interesting session – the CIO asked me – “So why did you start with technology? we should have started with the business case?”  I replied – “Got your attention, didn’t I!”

Talking with clients we stress threat modeling and analysis and doing quantitative risk analysis but I believe that psychology may be more important than the technology. This is for several reasons:

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The Fallacies in Obama public policy

Look at this graph

From the graph, we see that the GDP dropped dramatically from 1929 to 1932 despite fairly constant government spending on stimulus programs (although the graph does not tell the story of the jinking and shifting in the Roosevelt stimulus packages).   The big uptick in GDP happened from 1935-1938 with no visible correlation to government spending and really took off as the US geared up for WWII, spending almost 50% of the GDP on defense.

In summary, regarding economic growth – Empirical  US economic data does not support the Obama administration thesis that it is possible to stimulate the US economy with public spending as measured by GDP.  The big rush happened because the US went to war against the Nazis. It might happen if the US  went to war against Islamic terror.

There are over 80,000 Federal regulations on the books (according to the FTC) and none of them prevented the current GFC. By it’s nature – a government is a highly inefficient operation – therefore, it’s far more effective to have a small set of easy to understand and very emphatic commandments that apply to everyone. Thou shalt not steal…for example. Now compare that with Sarbanes-Oxley…..

Regarding regulation – historical empirical data from the USSR, does not support the thesis that centralistic regulation and  control are sustainable strategies for a country. Heck it – doesn’t even work for a family with 4 teenagers….

Moreover – what exactly is Obama’s exit strategy for getting us out of debt to the Chinese and de-extricating the US from draconic regulation in 10 years when  no one will remember why and how we ended up shackling the most creative economy in the world.

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