Policy Mining with AI: Case Study

In a previous article I wrote about how AI can be used to analyse regulations and create draft policies for review. I’d now like to take a pause and work though an example based on the Australian Privacy Principles.

This article will walk you through a step-by-step process of creating documented policies derived from Chapter 11 of the APP - a provision specifically dedicated to the security of personal information. By working through this example, we aim to demystify the often complex journey from regulatory text to documented policies.

Phase 1 : Regulatory Analysis

This is where we take (ie copy/paste) the AAP Chapter 11 document and ask ChatGPT to analyse it with the object of moving us along the line towards policy creation, and ultimately Policy as Code.

This exploration is designed to unravel the intricacies of APP 11, transforming its regulatory mandates into actionable, technical safeguards for automated systems.

Prompt

Perform a Comprehensive Regulatory Analysis on Australian Privacy Principles - Chapter 11: APP 11 Security of personal information

In the context of adopting a policy-as-code approach, the primary step involves a detailed analysis of the regulatory environment to identify areas where compliance requirements can be translated into technical rules for automation.

The goal is to focus on policy domains that offer clear pathways for codification into technical controls and automated monitoring systems.

Based on the criteria to identify areas for policy-as-code implications, ChatGPT responds with a list of relevant policy domains, taking into account the technical feasibility of implementing these requirements.

Here is a snippet of the response. See Appendix for the full text.

Response: Policy-as-Code Implications

Translating APP 11 into a policy-as-code framework involves identifying technical controls and automated processes that can enforce these regulatory requirements. This includes:

• Data Lifecycle Management: Automating the identification and classification of personal information to apply appropriate security controls throughout its lifecycle.
• Access Control and Encryption: Implementing technical measures to restrict access to personal information and encrypting data both at rest and in transit.
• Incident Response and Monitoring: Developing automated systems for detecting security incidents and unauthorised access, including the use of intrusion detection systems and regular access reviews.
• Data Minimisation and De-identification: Employing algorithms to de-identify data automatically when it is no longer necessary to hold it in its original form, ensuring compliance with destruction requirements.
• Compliance Auditing: Utilising automated tools to regularly audit and report on compliance with APP 11, highlighting areas of non-compliance and facilitating continuous improvement.

Phase 2 : Distillation

To effectively translate the requirements of APP 11 into actionable compliance mandates for access control and encryption, it is essential to articulate these mandates in a manner that is both precise and actionable. This will ensure that they can be directly implemented within an organisation's technical infrastructure and policy-as-code frameworks.

Let’s now focus on a single domain, Access Control and Encryption in particular.

Prompt

Formulate Compliance Mandates for Access Control and Encryption

Following the comprehensive regulatory analysis, the next pivotal step in implementing a policy-as-code framework is the distillation of these regulatory requirements into clear, actionable compliance mandates. This process involves translating the broad and often complex language of regulations into discrete, specific mandates that directly inform the creation of technical controls and configurations. The aim is to produce a set of actionable, codifiable rules that can be automated within technology environments.

Each mandate should clearly state what needs to be done, how it should be done, and who is responsible. This clarity is crucial for the next stage, where these mandates are codified into policy rules.

A list of 6 compliance mandates is drafted covering both access control and encryption. In this case study we’ll focus our attention on just one - Data Encryption at Rest

See Appendix for full list.

Response: Compliance Mandates

Compliance Mandates for Access Control

1. Mandate on Access Control Policies …..
2. Mandate on User Authentication ….
3. Mandate on Access Logging and Monitoring ….

Compliance Mandates for Encryption

1. Mandate on Data Encryption at Rest

• Requirement: Encrypt all personal information stored within the organisation's systems to protect against unauthorised access.
• Implementation: Utilise industry-standard encryption algorithms (e.g., AES-256) for encrypting data at rest. Encryption keys must be managed securely, with access restricted to authorised personnel only.
• Responsibility: IT managers are responsible for ensuring that data at rest is encrypted, and the IT security team is responsible for managing encryption keys.

2. Mandate on Data Encryption in Transit ….

3. Mandate on Encryption Key Management ….

Phase 3 : Development Policy Documents

This is were we take an individual compliance mandate and develop a policy document for it.

Let’s take a look at the mandate for Data Encryption at Rest in particular.

Prompt

Draft a policy for Data Encryption at Rest using the provided template

We now have a draft policy document in a standard format, ready for review by the compliance and engineering teams. The full document is rather long, so here is a just a relevant snippet. See Appendix for the full text of the response

Response: Data Encryption at Rest Policy

5 Policy Requirements

5.1 Encryption Standards

• All personal and sensitive information stored on [Organisation Name]'s systems must be encrypted using [specify encryption standard, e.g., AES-256].
• Encryption algorithms and standards must comply with current best practices and be reviewed annually for adequacy against evolving security threats.

5.2 Encryption Key Management

• Encryption keys must be securely managed throughout their lifecycle, including generation, storage, rotation, and deletion.
• Access to encryption keys must be restricted to authorised personnel only, based on the principle of least privilege.
• Key management practices must ensure that keys are stored separately from encrypted data to prevent unauthorised access.

5.3 Data Storage and Access

• All storage devices and repositories containing encrypted data must have access controls in place to restrict access to authorised personnel.
• Procedures must be established for the secure deletion of data and encryption keys when they are no longer required, in compliance with [Organisation Name]'s data retention policy.

5.4 Compliance and Monitoring

• Regular audits must be conducted to ensure compliance with this policy, including verification of encryption implementations and key management practices.
• Any deviations or breaches of this policy must be reported immediately to the Information Security team for investigation and remediation.

The Journey of Policy Development from Regulatory Documents

The process and steps outlined above represent a systematic approach to translating regulatory requirements into actionable, documented policies. This journey from understanding the nuances of APP 11 to developing a comprehensive set of security policies serves as a practical example of how organisations can navigate the complexities of compliance. It underscores the importance of a methodical approach, starting with a thorough review of regulatory guidelines, identifying key policy areas, and then crafting policies that address those areas.

Reflecting on the Process

This worked example demonstrates the value of breaking down the regulatory documents into actionable segments, allowing for a focused development of policies that are both compliant and tailored to the specific needs of an organisation. The structured approach—reviewing guidelines, prioritising policy areas, and drafting detailed policies—ensures that all essential aspects of data security and privacy are covered comprehensively.

The principles and processes applied here are universally relevant across industries. Any organisation that handles personal information can adopt a similar approach to ensure their data handling practices are in line with regulatory expectations. This methodical process not only aids in compliance but also embeds a culture of security and privacy within the organisation, enhancing trust among customers and stakeholders.

Engineering Perspective: Policy as Code

From an engineering standpoint, particularly within the context of DevSecRegOps, not all policies derived from regulatory documents necessitate development into policy as code. This distinction is crucial for efficiently allocating resources and focusing efforts on areas where automation and codification can have the most significant impact. For example, policies around encryption and access control are prime candidates for implementation through policy as code, offering direct benefits in terms of enforceability and compliance monitoring.

However, other areas, such as data breach reporting process or third-party security, may not lend themselves as readily to this approach. These areas often involve nuanced decision-making, negotiation, or human intervention, which are less amenable to codification. Recognising which policies to translate into code and which to manage through traditional means is a vital skill, ensuring that the intersection of development, security, regulation, and operations (DevSecRegOps) remains both efficient and effective.

Final Thoughts

The journey of deriving policies from regulatory documents is both challenging and rewarding. It requires a deep understanding of both the regulatory landscape and the operational realities of an organisation. This worked example serves as a guide for others embarking on similar journeys, illustrating the importance of a structured approach, the need for cross-disciplinary collaboration, and the discernment to know which policies to automate. Ultimately, the goal is to ensure that compliance is not just a checkbox but a foundation for building secure, trusted, and resilient organisations.

My next article will look at drafting more engineering-specific policy documents, taking us on the next step towards creating policy as code.

Appendix of Full Responses

Phase 1 Response: Regulatory Analysis

The Australian Privacy Principles (APPs), specifically Chapter 11 (APP 11) on the Security of Personal Information, provide a comprehensive framework for the protection of personal information within Australia. This analysis aims to dissect the requirements of APP 11 to facilitate the translation of these regulatory obligations into technical controls and automated monitoring systems, particularly for organisations in sectors like fintech where compliance is not only mandatory but also critical to maintaining consumer trust and regulatory integrity.

Overview of APP 11

APP 11 mandates that APP entities must take reasonable steps to protect personal information from misuse, interference, loss, and unauthorised access, modification, or disclosure. Additionally, it requires entities to destroy or de-identify personal information when it is no longer needed, unless specific exceptions apply. This principle is pivotal in ensuring the integrity and confidentiality of personal information.

Key Requirements and Considerations

1. Scope of Application

• Holds: APP 11 applies to personal information that an entity "holds", encompassing both physical possession and control over the information.

2. Reasonable Steps

• The nature of the steps to ensure security varies based on factors such as the entity's size, the information's sensitivity, and potential adverse consequences of a breach. These steps extend across various domains including governance, ICT security, access control, and third-party management.

1. Security Considerations

• The principle outlines specific security considerations like protection against misuse, interference, loss, and unauthorised access, modification, or disclosure. Each term is not explicitly defined within the Privacy Act, implying a need for entities to adopt a broad and proactive approach to information security.

1. Destruction or De-identification

• When personal information is no longer needed, entities must take steps to either destroy it or ensure it is de-identified, barring exceptions related to Commonwealth records or legal requirements.

Policy-as-Code Implications

Translating APP 11 into a policy-as-code framework involves identifying technical controls and automated processes that can enforce these regulatory requirements. This includes:

• Data Lifecycle Management: Automating the identification and classification of personal information to apply appropriate security controls throughout its lifecycle.
• Access Control and Encryption: Implementing technical measures to restrict access to personal information and encrypting data both at rest and in transit.
• Incident Response and Monitoring: Developing automated systems for detecting security incidents and unauthorised access, including the use of intrusion detection systems and regular access reviews.
• Data Minimization and De-identification: Employing algorithms to de-identify data automatically when it is no longer necessary to hold it in its original form, ensuring compliance with destruction requirements.
• Compliance Auditing: Utilising automated tools to regularly audit and report on compliance with APP 11, highlighting areas of non-compliance and facilitating continuous improvement.

Conclusion

The adoption of a policy-as-code approach to APP 11 compliance enables organisations to operationalise privacy and security practices, ensuring consistent and efficient adherence to regulatory requirements. By embedding these principles into technical controls and automated systems, organisations can not only meet their legal obligations but also strengthen their security posture and protect the personal information of individuals effectively. This approach is particularly relevant in the fintech sector, where the handling of sensitive financial information necessitates robust security measures and compliance with privacy laws.

Phase 2 Response: Compliance Mandates

To effectively translate the requirements of APP 11 into actionable compliance mandates for access control and encryption, it is essential to articulate these mandates in a manner that is both precise and actionable. This will ensure that they can be directly implemented within an organisation's technical infrastructure and policy-as-code frameworks. Below are formulated compliance mandates focusing on access control and encryption, derived from the regulatory analysis of APP 11.

Compliance Mandates for Access Control

1. Mandate on Access Control Policies

• Requirement: Implement comprehensive access control policies that restrict access to personal information to only those individuals who require it to perform their job functions.
• Implementation: Utilise role-based access control (RBAC) systems to define and enforce access permissions based on job roles. Regularly review and update access permissions to reflect changes in employment status or roles.
• Responsibility: The Chief Information Security Officer (CISO) is responsible for the development of access control policies, while IT managers are responsible for their implementation and enforcement.

2. Mandate on User Authentication

• Requirement: Ensure robust user authentication mechanisms are in place to verify the identity of users accessing personal information.
• Implementation: Deploy multi-factor authentication (MFA) for all systems and applications that store or process personal information. This should include a combination of something the user knows (password), something the user has (security token), and/or something the user is (biometric verification).
• Responsibility: IT security teams are responsible for implementing and maintaining authentication mechanisms.

3. Mandate on Access Logging and Monitoring

• Requirement: Maintain detailed logs of access to personal information and monitor these logs for unauthorised access attempts.
• Implementation: Implement automated logging and monitoring tools that record access events and generate alerts for suspicious activities. Ensure logs are retained for a minimum period as defined by organisational policy or regulatory requirements.
• Responsibility: The cybersecurity operations team is responsible for the oversight of access logging and monitoring activities.

Compliance Mandates for Encryption

1. Mandate on Data Encryption at Rest

• Requirement: Encrypt all personal information stored within the organisation's systems to protect against unauthorised access.
• Implementation: Utilise industry-standard encryption algorithms (e.g., AES-256) for encrypting data at rest. Encryption keys must be managed securely, with access restricted to authorised personnel only.
• Responsibility: IT managers are responsible for ensuring that data at rest is encrypted, and the IT security team is responsible for managing encryption keys.

2. Mandate on Data Encryption in Transit

• Requirement: Encrypt personal information during transmission over public or unsecured networks to prevent interception and unauthorised access.
• Implementation: Use secure communication protocols such as TLS (Transport Layer Security) for all data in transit. Ensure that all transmitted data is encrypted end-to-end from the source to the destination.
• Responsibility: Network security teams are responsible for implementing and configuring secure transmission protocols.

3. Mandate on Encryption Key Management

• Requirement: Implement a secure encryption key management system to protect and manage cryptographic keys throughout their lifecycle.
• Implementation: Deploy a centralised key management platform that supports key generation, distribution, rotation, and revocation. Ensure that access to the key management system is strictly controlled and audited.
• Responsibility: The IT security team is responsible for the oversight of encryption key management practices.

By clearly defining these mandates, organisations can ensure that their approach to access control and encryption is aligned with the requirements of APP 11, thereby protecting personal information from unauthorised access, modification, or disclosure. These mandates serve as a foundation for developing technical controls and configurations that can be automated within an organisation's IT environment, facilitating compliance and enhancing data security.

Phase 3 Response: Data Encryption at Rest Policy

Policy Title: Data Encryption at Rest Policy

Policy Version: 1.0

Effective Date: [Insert Effective Date]

Last Reviewed: [Insert Review Date]

Policy Owner: Chief Information Security Officer (CISO)

Policy Approver: Chief Executive Officer (CEO)

1. Purpose

The purpose of the Data Encryption at Rest Policy is to ensure that all personal and sensitive information stored within [Organisation Name]'s systems is adequately protected against unauthorised access, thereby maintaining the confidentiality and integrity of such data in compliance with the Australian Privacy Principles (APP), specifically APP 11.

2. Scope

This policy applies to all employees, contractors, and third-party service providers of [Organisation Name] who have access to the organisation's digital systems and storage solutions that contain personal or sensitive information.

3. Policy Statement

[Organisation Name] is committed to protecting the personal and sensitive information it holds from unauthorised access, modification, or disclosure. To this end, [Organisation Name] mandates the encryption of all such data at rest using industry-standard encryption algorithms. This policy outlines the requirements for encrypting data at rest, managing encryption keys, and ensuring the ongoing confidentiality and integrity of stored data.

4. Definitions

• Data at Rest: Data that is stored on physical or virtual storage devices and is not actively being transmitted across networks.
• Encryption: The process of converting data into a coded format that cannot be easily understood by unauthorised people.
• Encryption Keys: Cryptographic keys used to encrypt and decrypt data.

5. Policy Requirements

5.1 Encryption Standards

• All personal and sensitive information stored on [Organisation Name]'s systems must be encrypted using [specify encryption standard, e.g., AES-256].
• Encryption algorithms and standards must comply with current best practices and be reviewed annually for adequacy against evolving security threats.

5.2 Encryption Key Management

• Encryption keys must be securely managed throughout their lifecycle, including generation, storage, rotation, and deletion.
• Access to encryption keys must be restricted to authorised personnel only, based on the principle of least privilege.
• Key management practices must ensure that keys are stored separately from encrypted data to prevent unauthorised access.

5.3 Data Storage and Access

• All storage devices and repositories containing encrypted data must have access controls in place to restrict access to authorised personnel.
• Procedures must be established for the secure deletion of data and encryption keys when they are no longer required, in compliance with [Organisation Name]'s data retention policy.

5.4 Compliance and Monitoring

• Regular audits must be conducted to ensure compliance with this policy, including verification of encryption implementations and key management practices.
• Any deviations or breaches of this policy must be reported immediately to the Information Security team for investigation and remediation.

6. Responsibilities

• CISO: Responsible for the overall implementation and compliance of the Data Encryption at Rest Policy.
• IT Managers: Responsible for ensuring that data at rest is encrypted according to this policy and for managing the encryption key lifecycle.
• Employees and Contractors: Required to comply with this policy and report any instances of non-compliance or security incidents related to data at rest.

7. Enforcement

Violations of this policy will be handled according to [Organisation Name]'s disciplinary process and may result in disciplinary action, up to and including termination of employment or contracts.

8. Policy Review and Modification

This policy will be reviewed annually or as required by changes in technology or regulatory requirements. Any amendments to this policy must be approved by the Policy Approver.

9. Acknowledgement

All employees and contractors with access to [Organisation Name]'s information systems are required to acknowledge receipt and understanding of this Data Encryption at Rest Policy.

This policy is intended to ensure that [Organisation Name] maintains the highest standards of data protection and complies with applicable privacy laws and regulations, thereby safeguarding the trust of its clients, employees, and partners.