Ewan Donald

Cyber Security

FEELFREEA NEW APPROACHTO CYBER SECURITY

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

AGENDA

THE CHANGING LANDSCAPE

THE EMERGING THREATS

THE RESPONSE

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

CYBER FIRMLY ON THE AGENDA

2011LOSS OF CUSTOMERS/CANCELLED ORDERSTALENT AND SKILLS SHORTAGE

REPUTATIONAL RISK

CURRENCY FLUCTUATION

CHANGING LEGISLATION

COST AND AVAILABILITY OF CREDIT

PRICE OF MATERIAL INPUTS

INFLATION

CORPORATE LIABILITY

EXCESSIVELY STRICT REGULATION

1

2

3

4

5

6

7

8

9

10

1

2

34

5

6

7

8

9

10

HIGH TAXATION

LOSS OF CUSTOMERS/CANCELLED ORDERS

CYBER RISKPRICE OF MATERIAL INPUTS

EXCESSIVELY STRICT REGULATION

CHANGING LEGISLATION

INFLATION

COST AND AVAILABILITY OF CREDIT

RAPID TECHNOLOGICAL CHANGES

INTEREST RATE CHANGES

2013

Source: Lloyd’s board risk index – http://www.lloyds.com/news-and-insight/risk-insight/lloyds-risk-index

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

CHANGING LANDSCAPE

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

EVOLVING THREAT

THREATACTORS

HACKTIVISM

ORGANISED CRIME

MALICIOUS INSIDER

STATE-SPONSORED

THE INSIDER

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

WHO IS BEING TARGETED?

AUTOMOTIVE AEROSPACE ENERGY PROVIDERS BANKS PROFESSIONAL & LEGAL SERVICES

DEFENCE ADVANCED MANUFACTURING

RENEWABLE ENERGY

GOVERNMENT RESEARCH INSTITUTES

PHARMACEUTICALS & BIOTECHNOLOGY

MINING & NATURAL RESOURCES

COMMUNICATIONS WIDER FINANCIAL SERVICES

ACADEMIA

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

WHAT DO THEY WANT

CUSTOMER / EMPLOYEE DATA

CORPORATE DATA

INTELLECTUAL PROPERTY

DENIAL OF SERVICE

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

8

…AND MORE REGULATION

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

GOVERNMENT RESPONSE

1 TACKLING CYBER CRIME

2 INCREASED RESILIENCE TO CYBER ATTACK

3 PROMOTE AN OPEN, VIBRANT AND STABLE CYBERSPACE

4 DEVELOP KNOWLEDGE, SKILLS AND CAPABILITY

OB

JEC

TIV

ES

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

INDUSTRY MATURITY

UNAWARE AWARENESS CRISISTACTICAL RESPONSE ADAPTIVEEVOLUTION

RISK

CAPABILITY

HIGH

LOW

NATURAL RESOURCES

TRANSPORT & LOGISTICS

OIL & GASINVESTMENT BANKING

AEROSPACE

DEFENCE

INSURANCE

RETAIL BANKING

INDUSTRIAL MANUFACTURE

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

PROPORTIONATE RESPONSE

UNDERSTAND THE THREAT

!

UNDERSTAND YOUR ASSETS

MANAGE THE RISK

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THE RIGHT APPROACH

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

FUTURE TRENDS

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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Do you have the right level of protection for your crown jewel assets?

What would the impact be on your business if you suffered a cyber security breach?

How do you know you haven’t already suffered one?

How are you managing your suppliers to ensure they are not a weak point in your security?

How do your cyber security capabilities compare to your peers?

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KEY QUESTIONS

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

RecapTHE LANDSCAPE IS CHANGING

THE THREATS ARE REAL

PROPORTIONATE RESPONSE NECESSARY

© 2015 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

EWAN DONALDCyber Security team

Ewan.donald@kpmg.co.uk© 2015 KPMG LLP, a UK limited liability

partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved.

THANK YOU!