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MIGUEL GARCIA-MENENDEZ iTTi | The [Digital] Accountability Think Tank Spain Former control engineer and management consultant for some 20 years Currently runs iTTi | The [Digital] Accountability Think Tank Former member of the Board of the Industrial Cybersecurity Center (CCI) @MGarciaMenendez

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MIGUEL GARCIA-MENENDEZiTTi | The [Digital] Accountability Think Tank

Spain

➢ Former control engineer and management consultant for some 20

years

➢ Currently runs iTTi | The [Digital] Accountability Think Tank

➢ Former member of the Board of the Industrial Cybersecurity Center

(CCI)

@MGarciaMenendez

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Kaspersky Lab’s 6th Industrial Cybersecurity Conference

Sochi (Russia). September, 20th, 2018

Miguel Garcia-Menendez (ES)Co-Founder & Chairman

iTTi | The [Digital] Accountability Think

Tank

@MGarciaMenendez

2iTTi | The [Digital] Accountability Think Tank

iTTi

An [almost] global

Industrial Cybersecurity

regulatory landscape

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

iTTi | The [Digital] Accountability Think Tank

iTTi

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

A 2+ decades’ career veteran, Miguel’s first job was in the steel Industryas Head of MES & HMI at an engineering firm, where he soon becameCIO. This let him know, first hand, the problems bound toInformation/Operational Technology integration.

He has also been a consultant, auditor, lecturer and popularizer inmanagement consultancy firms, universities and forums from which hehas helped other executives to fulfill their digital obligations.

Today, Miguel aims to help corporate Directors & Officers tounderstand their digital | cyber accountability.

You can follow Miguel’s professional interests as well as his musings viahis Twitter account, @MGarciaMenendez.

Miguel Garcia-MenendezCo-Founder & ChairmaniTTi | The [Digital] Accountability Think Tank

iTTi | The [Digital] Accountability Think Tank

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@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 6iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Novorossiysk (RU)

7iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Novorossiysk (RU)

Gijon (ES)

8iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Gijon (ES) Novorossiysk (RU)

9iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 10iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Are we going to have a

digitally-transformed

industry to protect?

Musing #1

11iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 12iTTi | The [Digital] Accountability Think Tank

THE digital industrial company?

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Prof. Thomas H.Davenport

Prof. GeorgeWesterman

13iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

0,

8,

16,

24,

32,

9/19/11 1/9/12 4/30/12 8/17/12 12/10/12 4/3/13 7/23/13 11/8/13 3/4/14 6/23/14 10/10/14 2/2/15 5/22/15 9/11/15 12/31/15 4/22/16 8/11/16 11/30/16 3/23/17 7/13/17 10/31/17 2/22/18 6/13/18

GE's stock price 2011-2018 (USD)

12.5 12.6

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Mr. John Flannery Mr. Jeffrey R. Immelt

15iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Security is hardly

digitally-transformed

Industry’s 1st challenge.

[Neither yours].

Provocation #1

16iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

The economy,

the desirability of your

products & your

investors’ patience are.

Provocation #1(cont.)

17iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 18iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 19iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

digitalFragility

20iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

dF=f(digital Density) =

f(digital Dependence) =f(dD, lack of awareness)

21iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

digitalFragility Quality of an organization that determines its

susceptibility to suffer an incident, of digital nature,

which disturbs its activity (besides causing other

consequences for people, assets or the

environment); and of whose possible materializationthere is not always consciousness.

22iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Protection:

everyone’s primary

[& primitive] need.

Musing #2

23iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Fort Alexandria

24iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Australia

Austria

Bangladesh

Belgium

Canada

Colombia

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Dominica

Egypt

Estonia

Finland

France

Gambia

Germany

Ghana

Hungary

India

Ireland

Italy

Jamaica

Japan

Jordan

Kenya

Latvia

Lithuania

Luxembourg

Mexico

Montenegro

Namibia

New Zealand

Nigeria

Norway

Paraguay

Peru

Poland

Qatar

Romania

Russia

Rwanda

Saudi Arabia

Singapore

Slovak Republic

South Africa

South Korea

Spain

Switzerland

The Netherlands

Trinidad and Tobago

Turkey

Uganda

UK

USA

Zimbabwe

Source: ENISA, European Network & Information Security Agency

“National” Cyber Security Strategies (CSS)

25iTTi | The [Digital] Accountability Think Tank

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«NATIONAL»?

Think twice …

Provocation #2

26iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Australia

Austria

Bangladesh

Belgium

Canada

Colombia

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Dominica

Egypt

Estonia

Finland

France

Gambia

Germany

Ghana

Hungary

India

Ireland

Italy

Jamaica

Japan

Jordan

Kenya

Latvia

Lithuania

Luxembourg

Mexico

Montenegro

Namibia

New Zealand

Nigeria

Norway

Paraguay

Peru

Poland

Qatar

Romania

Russia

Rwanda

Saudi Arabia

Singapore

Slovak Republic

South Africa

South Korea

Spain

Switzerland

The Netherlands

Trinidad and Tobago

Turkey

Uganda

UK

USA

Zimbabwe

Source: ENISA, European Network & Information Security Agency

“National” Cyber Security Strategies (CSS)

27iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

… and stop calling your

CSS «NATIONAL», in a

borderless [cyber] space.

Provocation #2(cont.)

28iTTi | The [Digital] Accountability Think Tank

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@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

[almost] global

COUNTRIES

BE

DE

ES

FR

IT

NL

PT

RO

TR

UK

ZA

CN

SG

US

RU[ ]30iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

not an easy task!

DOCUMENTS LANGUAGES

31iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

STRATEGIES REGULATIONS CODES

32iTTi | The [Digital] Accountability Think Tank

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CS strategies analyzed

33iTTi | The [Digital] Accountability Think Tank

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avoid the “I-want-my-own-strategy” presidential syndrome

Until recently [May, 15th, 2018], the US had no

specific formal cybersecurity strategy [despite

having been a CSS pioneer in 2003].

There have been several public policies, instead.

Russia started its InfoSec journey in 2000.

An updated doctrine was approved in 2016.34iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

an example for the rest of us

Germany, The Netherlands, Turkey, the UK and the US,

the most veteran countries (more than 1 iteration) in

developing CSS’s.

Russia introduced the concept of Cyber Security

Strategy for the first time in a draft released in 2014.

35iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

corporate directors are not in the policy-makers’ agendas

Only Spain, The Netherlands, Turkey and the UK

have specific objectives or actions targeting

BoD’s members w/in their CSS’s.36iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

ICS cybersecurity is not in the policy-makers’ agendas

The Netherlands, Romania, Turkey and the US’s

CSS do not include specific mention to Operational

Technology at all.

Russia’s InfoSec doctrine does not include any

reference to ICS cybersecurity, too.

37iTTi | The [Digital] Accountability Think Tank

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CIP regulations analyzed [pre-EU NIS Directive]

38iTTi | The [Digital] Accountability Think Tank

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“less regulation, better regulation” might apply here

A specific regulation rules CIP in every country, except for The

Netherlands and the UK. The EU NIS Directive has come to

change this.

Russia started its CIP journey in the early 2000s. Today

Russia’s CIP policy is part of its national security strategy.39iTTi | The [Digital] Accountability Think Tank

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another example for the rest of us

Romania and Turkey (again) are among the most

veteran (2010) countries when it comes to

formally define their CIP policy.

40iTTi | The [Digital] Accountability Think Tank

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would less disparity benefit interdependencies someway?

Italy and Portugal have opted for extrictly following EU’s

CIP Directive of 2008. Their critical sectors are only energy

& transportation. A situation that the EU NIS Directive has

come to change.

41iTTi | The [Digital] Accountability Think Tank

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The post-EU NIS Directive picture

COUNTRIES

affected [w/in our study]

BE

DE

ES

FR

IT

NL

PT

RO

TR

UK

ZA

CN

SG

US

RU[ ]42iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

BE

DE

ES

FR

IT

NL

PT

RO

UK

The post-EU NIS Directive picture

as of May, 9th, 2018 COUNTRIES

complied [on due

date]

Source: European Commission

43iTTi | The [Digital] Accountability Think Tank

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17 out of 28

The post-EU NIS Directive picture

Source: European Commission

COUNTRIES

were urged to transpose the NIS Directive [on July, 20th, 2018]

44iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

The post-EU NIS Directive picture

BE

DE

ES

FR

IT

NL

PT

RO

UK

… as of today.Source: European Commission

COUNTRIES

still pending45iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

Are companies taking

cybersecurity seriously?

Musing #3

46iTTi | The [Digital] Accountability Think Tank

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Australia

Austria

Bangladesh

Belgium

Canada

Colombia

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Dominica

Egypt

Estonia

Finland

France

Gambia

Germany

Ghana

Hungary

India

Ireland

Italy

Jamaica

Japan

Jordan

Kenya

Latvia

Lithuania

Luxembourg

Mexico

Montenegro

Namibia

New Zealand

Nigeria

Norway

Paraguay

Peru

Poland

Qatar

Romania

Russia

Rwanda

Saudi Arabia

Singapore

Slovak Republic

South Africa

South Korea

Spain

Switzerland

The Netherlands

Trinidad and Tobago

Turkey

Uganda

UK

USA

Zimbabwe

Source: ENISA, European Network & Information Security Agency

“National” Cyber Security Strategies (CSS)

47iTTi | The [Digital] Accountability Think Tank

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out of

# of countries that already have their own CSS

Source: ENISA, European Network & Information Security Agency

48iTTi | The [Digital] Accountability Think Tank

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25% of countries already

have a CSS!

Does companies have?

Provocation #3

49iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank #1SevenDigitalSins

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

iTTi | The [Digital] Accountability Think Tank

“Although ultimate responsibility for cyber security

within a company lies with the CEO, it would be highly

unusual for the CEO of a company to have to resign

over an attack”.

UK Parliament (@UKParliament)

House of Commons

Culture, Media & Sport Committee

“Cyber Security: Protection of Personal Data Online” report

#QuoteBroughtBySource: iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Oil & Gas

52iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Air Transport

& Aeronautics

53iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Digital Security

54iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Financial

Services

55iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Healthcare

56iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Public

Sector

57iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Retail

58iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Leisure &

entertainment

59iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Automotive

60iTTi | The [Digital] Accountability Think Tank

@info_CCI | CCI | Industrial Cybersecurity Center #1SevenDigitalSins

Policy Making

61iTTi | The [Digital] Accountability Think Tank

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1999 2004 2010 2011 2011 2012

2012 2013 2014 2015 2015 2015

2015 2016 2016 2016 2016

62iTTi | The [Digital] Accountability Think Tank

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Digital is not my

biz!

63iTTi | The [Digital] Accountability Think Tank

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

?

Who’s been

next?

?64iTTi | The [Digital] Accountability Think Tank

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@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

“… sometimes it's OK to admit to your

fallibility”.

66iTTi | The [Digital] Accountability Think Tank

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“We thought we were taking it

[cybersecurity] seriously, outside experts

were telling us we were taking it seriously.

Patently we weren't taking it anything like

seriously enough.

One thing I think I know more keenly than

any other British CEO is that every single one

of us is underestimating the importance of

cybersecurity”.

67iTTi | The [Digital] Accountability Think Tank

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CG codes analyzed

68iTTi | The [Digital] Accountability Think Tank

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does it make sense?

Corporate Governance codes are

mandatory, while its

recommendations are not

(“comply-or-explain” principle).

Exception: US (the Sarbanes-

Oxley Act of 2002 is not a code, it

is a law).

69iTTi | The [Digital] Accountability Think Tank

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shouldn’t every Audit/Risk Committee act early, too?

Risk oversight is BoD’s biz (usually through

an Audit or Risk Committee).

Turkish listed companies have an Early

Detection of Risk Committee.

In the case of Russia, its Corporate

Governance Code also reffers to an Audit

Committee.

70iTTi | The [Digital] Accountability Think Tank

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this probably explains everything

Only The Netherlands and South Africa’s CG

codes make an explicit mention to cyber

[despite almost all of them were released

after the TARGET case (2013)].

Of course, none of them mentions industrial

cybersecurity.

71iTTi | The [Digital] Accountability Think Tank

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Definitely, it seems that

companies are not taking

cybersecurity seriously.

Provocation #3(cont.)

72iTTi | The [Digital] Accountability Think Tank

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a change of behaviour: the “Cybersecurity Disclosure Act”

Good news

Sen. J. Reed (D) Sen. S. M. Collins (R)

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

a change of behaviour: the “Cybersecurity Disclosure Act”

Good news

Sen. J. Reed (D) Sen. S. M. Collins (R) Sen. M. R. Warner (D) Sen. J. McCain (R)

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

a change of behaviour: the “Cybersecurity Disclosure Act”

Good news

Rep. J. Himes (D) Rep. T. Rooney (R) Rep. G. Meeks (D) Rep. D. Heck (D)

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank

a change of behaviour: the “Cybersecurity Disclosure Act”

More good news

@iTTiresearch | iTTi | The [Digital] Accountability Think Tank 77iTTi | The [Digital] Accountability Think Tank

iTTi Thank you very much!!!