2. Security is No Longer Optional.

4. Cheaper Higher Quality More Secure

5. Cheaper Higher Quality More Secure Pick Only 2

6. Tech-Savvy Generation Organized Crime Groups ‘H-Activism’ State Sponsored Cyber-Crime Threats

7. Tech-Savvy Generation Organized Crime Groups ‘H-Activism’ State Sponsored Cyber-Crime Payment Card Information Reliance on Service Availability Consumer Data Intellectual Property Threats Targets

8. Tech-Savvy Generation Organized Crime Groups ‘H-Activism’ State Sponsored Cyber-Crime Payment Card Information Reliance on Service Availability Consumer Data Intellectual Property Threat Intelligence Cloud ComputingOutsourcing Decentralized Technology Threats Enablers Targets

10. Recent Cyber Attacks Estimated Impact (hard + soft) Skill Set / Sophistication / Cleverness Low High Sony PSN EA Neverwinter Nights EA Forums HBGary Federal EA Battlefield Hero (beta) “Stuxnet- Iran Centrifuge” RSA Lockheed-Martin (Intrusion via RSA trust) Arizona DPS US Chamber of Commerce Epic Games FBI – Infragard Motorola PBS.org Sony Greece Sony Pictures Codemasters Bethesda Software Square Enix Riot Games Nintendo Sega CitiGroup Sony BMG Unveillance US Senate Northrop Grumman Google Malaysia Govm’t CIA IMF PayPal Spanish Govm’t DigiNotar CA GlobalSign CA Comodo CA StartCom CA

11. “I divide the entire set of Fortune 2,000 firms into two categories… …those that know they’ve been compromised and those that don’t know it yet.” Dmitri Alperovitch Vice President, Threat Research McAfee

12. Proactive Protection: Content, Transactions, Uptime Keep bad things from happening.

13. Reactive Protection: Logging, Forensics, Tracking Know if happening, what exactly happened, and how.

15. Security is a Business Issue.

16. Put Security into a Business Context through Risk Management

17. Risk Management Business RiskBusiness Value Impact Probability Cost Impact Probability Cost Informed Business Decision =

18. Modeling an alternative DVD distribution model Differential = R5 Impact Lower-Quality Cam, Better cam, US Retail Compromise wk 10 of Theatrical R5 Cams Russian DVD US Retail DVD Cams Russian DVD US Retail DVD R5 = 3.0 Million Downloads (49%) US Retail DVD = 0.7M Downloads (12%) Estimated Loss to Piracy (unrealized revenue to Top 10 Mature Markets) Estimated Russia 52 Wk HE Revenue: $1.05M Estimated Net Result: Loss of $5.85M Total ALL Piracy: $38.9M (incl R5) Piracy without R5: $32.0M R5 Only: $6.9M Piracy impacts calculated to TOP 10 Mature Markets using the “Disney-developed Piracy Impact Model”, which has been freely shared with other studios.

20. Have the right people at the table.

21. Cheaper Higher Quality More Secure + Revolutionary Business Models + Revolutionary Security Models