1. Ewan Donald Cyber Security FEEL FREE A NEW APPROACH TO CYBER SECURITY

2. © 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

3. © 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 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 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 – http://www.lloyds.com/news-and-insight/risk-insight/lloyds-risk-index

4. © 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

5. © 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

6. © 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

7. © 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

8. © 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

9. © 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

10. © 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

11. © 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

12. © 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

13. © 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

14. © 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? 14 1 2 3 4 5 KEY QUESTIONS

15. © 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

16. © 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 Ewan.donald@kpmg.co.uk © 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!