1. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Emerging Risks in a Mobile Environment Shared Assessments Roundtable November 6, 2012 Art Kirchoffer Executive Director – Risk Management AT&T

2. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Distracted driving  Employee injury  3 rd party claim  Electromagnetic Fields (EMF) / Radiofrequency (RF)  Numerous studies; no definitive opinion  FCC re-examining standards  Limited insurance availability  Wildfire  Aerial cable exceeding capacity of poles  Limited insurance availability  Natural catastrophe  COWS, SOWS and COLTS 2 Traditional Risks

3. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Consumerization of IT & BYOD/A/C  Near-field communication (NFC)  Mobile payments (ISIS, MCX, Google Wallet)  Connected homes, cars & cities  mHealth  M2M (The Internet of Everything)  Cloud  Big data 3 Industry Trends (and emerging exposures)

4. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Smartphones, notebooks, laptops, tablets, other  Data and privacy risk  Device theft / loss  iOS v. Android  Abundant availability of applications  Malware increasingly targeting mobile devices  Social networks  Intellectual property  Short life cycle + constant change 4 Device and Application Risks (BYOD)

5. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Legal and privacy issues more complex than security challenges  Lack of case law and legal precedence  PCI Security Standards & HIPAA  Logistical challenges of e-Discovery and ability to search for, collect and preserve data  Device ownership and the right to seize  Data / content / email ownership  Employee privacy  Liability for employee personal activities  Copyright / IP risk  FLSA and wage & hour lawsuits 5 Legal & HR Considerations (BYOD)

6. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Externalization of business  Line between organization and supplier is blurred  Many of the risks are the same, but with less control  Robust contract and supplier GRC program are best tools  Burden of oversight rests with the organiza tion  Supplier information security requirements should address mobile  Insurance is good backstop 6 Supplier Considerations

7. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Management and security around mobile lags  Exposure evaluation requires enhanced skill set  Technology constantly changing  No clear rules  Untested insurance solutions  Traditional P&C policies exclude losses related to intangible data  Specialty cyber and E&O coverages have emerged  Should address data breach and privacy issues for cloud and mobile  Can extend coverage to suppliers  Coverage cases and large claims have not tested these policies 7 Risk Management Challenges

8. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.  Establish policy around the RM process  Training and reinforcement  Not all data / users are created equal  Policy should include / address:  Employee agreement  Expectation of privacy; personal content; usage monitoring  Security (sign-on, encryption, back-up)  Device / OS options and limitation  Application access & controls  Device disable, wipe and confiscation  Stipend or reimbursement  Records and information management  Policy not airtight, but a step in the right direction  Consider MDM & MAM tools 8 Mobile Device Risk Management

9. © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 9 Itcanwait.com