Ewan Donald Cyber Security FEEL FREE A NEW APPROACH TO 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 2011 LOSS OF CUSTOMERS/CANCELLED ORDERS TALENT AND SKILLS SHORTAGE REPUTATIONAL RISK CURRENCY FLUCTUATION CHANGING LEGISLATION COST AND AVAILABILITY OF CREDIT PRICE OF MATERIAL INPUTS INFLATION CORPORATE LIABILITY EXCESSIVELY STRICT REGULATION HIGH TAXATION LOSS OF CUSTOMERS/CANCELLED ORDERS CYBER RISK PRICE 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 –

© 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 THRE AT ACTORS 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? AUTOMOTIVEAEROSPACEENERGY PROVIDERSBANKSPROFESSIONAL & LEGAL SERVICES DEFENCEADVANCED MANUFACTURING RENEWABLE ENERGY GOVERNMENTRESEARCH INSTITUTES PHARMACEUTICALS & BIOTECHNOLOGY MINING & NATURAL RESOURCES COMMUNICATIONSWIDER 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 OBJECTIVES

© 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 UNAWAREAWARENESSCRISIS TACTICAL RESPONSE ADAPTIVEEVOLUTION RIS K CAPABILIT Y HIGH LOW NATURAL RESOURCES TRANSPORT & LOGISTICS OIL & GAS INVESTMENT 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

© 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. 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. 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? 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. Recap THE 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 DONALD Cyber Security team © 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!