CYBERWARFARE AND ITS IMPLICATIONS FOR CIVILIAN INDUSTRY May

CYBERWARFARE AND ITS IMPLICATIONS FOR CIVILIAN INDUSTRY May 16, 2018 Hosted by Merck IT Risk Management & Security

Agenda 1. Introduction and Context – Martha Van. Driel 2. Not. Petya and Its Impact on Merck – Terry Rice 3. Cyberwarfare and Its Implications for Civilian Industry – Panel 4. Q & A – All 2

Setting the Context Who: Nationstates “Cyberwarfar e” What is cyberwarfare? Cyber espionage Cyber sabotage Cyber subversion Based on “Cyberwarfare Will Not Take Place” by Thomas Rid, 2013 Industrial espionage National security espionage (e. g. , critical infrastructure) Direct impacts on Civilian Industry Targeted sabotage - Collateral damage - Information operations “Fake news” Information operations (Leaking sensitive information) “Lone wolf” radicalization • • Intellectual property loss Breach notification laws (with penalties) Business operations disruption and associated costs Reputational costs and stock market impacts Physical damage Recovery costs Will cyber insurance pay? Will governments provide protection, adversary response, or penalties? 3

Join the Conversation! Not. Petya and Its Impact on Merck Terry Rice Merck Vice President, IT Risk Management and Security & Chief Information Security Officer (CISO) 4

Join the Conversation! Cyber Chat Panel Participants Cyberwarfare and Its Implications for Civilian Industry Nation states are increasing their use of cyberwarfare, where companies can be outright targets or become collateral damage, which raises questions regarding cyber insurance and governmental obligations to defend civilians. Robert Clark John Davis Martha Van. Driel Harry Kantola 5

Published FEB 2017

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