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Time	Speaker	Text
00:00:08	>>	NOW WE CONFERENCE ON CYBERSPACE AND NATIONAL SECURITY HELD BY THE ARMED FORCES COMMUNICATIONS AND ELECTRONICS ASSOCIATION. WE WILL HEAR FROM HOMELAND SECURITY MICHAEL CHERTOFF AND DEPUTY SECRETARY OF DEFENSE GORDON ENGLAND. THIS IS AN HOUR AND A HALF.
00:00:21	>>	GOOD MORNING EVERYONE. PLEASE CONTINUE TO TAKE YOUR SEATS. WE WOULD LIKE TO START ON TIME. AND LET ME WELCOME YOU TO CYBERSPACE, CHALLENGES AND SOLUTIONS FOR NATIONAL SECURITY. I AM MIMI BROWNING DETERT OF THE TECHNOLOGY COMMITTEE. THE TECHNOLOGY COMMITTEE IS THE SPONSOR FOR THESE EVENTS AND OVER THE PAST YEAR WE HAVE PARTNERED WITH OSD, THE JOINT STAFF, AND THE OFFICE OF THE DIRECTOR OF NATIONAL INTELLIGENCE TO BRING YOU THESE EVENTS. THE TECHNOLOGY COMMITTEE HAS OVER 50 MEMBERS, GOVERNMENT AND INDUSTRY. AT OUR MISSION IS TO FURTHER THE DIALOGUE AMONG GOVERNMENT, INDUSTRY AND ACADEMIA ON INFORMATION TECHNOLOGY ISSUES OF IMPORTANCE TO OUR NATION. WE DO SO THREE EVENTS LIKE THE SOLUTION SERIES AS WELL AS OTHER OUTREACH ACTIVITIES SUCH AS OUR INFORMATION TECHNOLOGY AWARDS, MONTHLY EXECUTIVE SPEAKERS AND THE ANNUAL CONFERENCE AT GEORGE MASON UNIVERSITY. THE TECHNOLOGY HAS BEEN AN INCUBATOR OF OFFERINGS. HEARING JUSTIN R. COMMITTEE, PLEASE TALK TO ME OR ANY OF THE OTHER MEMBERS HERE TODAY. YOUR VOICES AND CONTRIBUTIONS ARE ESSENTIAL TO THE SUCCESS OF OUR MISSION. I WOULD LIKE NOW TO INTRODUCE KAT HOLLIS, WHO HAS BEEN OUR MOST VISIONARY AND DEDICATED CHAIR OF THE CYBERSPACE SOLUTION SERIES. KAT, GOOD MORNING.
00:02:02	>>	GOOD MORNING. THIS IS ABSOLUTELY FANTASTIC, DON'T YOU THINK? LOOK AT THIS ROOM. FOR THOSE OF US THAT HAVE KIND OF WORK THROUGH THIS WHOLE SOLUTIONS SERIES, THIS IS THE CULMINATION OF ALL THEIR HARD WORK. THIS IS WHAT WE FELT WAS GOING TO BE THE PINNACLE AND THE SUCCESS STORY OF WHAT WE PULLED TOGETHER FOR THIS YEAR SO WHAT I WANT TO DO WAS JUST QUICKLY TOUCH ON A COUPLE OF THINGS BEFORE LAUNCH INTO SOME OF OUR GREAT PLENARIES THAT WE HAVE TODAY. TODAY IS GOING TO BE SUPER, TAMARA'S ONE TO BE WONDERFUL SO I HOPE ALL OF YOU ARE GOING TO HAVE A GREAT DAY TO DAY AND YOU ARE GOING TO HAVE AN EVEN BETTER DAY TOMORROW BUT LET'S TALK A LITTLE BIT ABOUT THE SOLUTION SERIES. SO, THE SOLUTION SERIES, WE STARTED OUT IN THE TECHNICAL COMMUNITY, FOR THOSE OF YOU WHO REMEMBER US, WE USED TO DO THINGS LIKE CZECH. WEISS TO DO A LOT OF OTHER TYPES OF ACTIVITIES WHERE WE GO OUT THERE AND TRY AND GET THE GOVERNMENT AND INDUSTRY TOGETHER FOR A DIALOGUE. WHAT WAS THAT BY LAW? USUALLY IT WAS YOUR TYPICAL CONFERENCE, YOUR TYPICAL CONFERENCE WHERE YOU KNOW MAYBE THERE ARE A FEW PEOPLE COMING UP, A KEY PANELS, LOTS OF SLIDES. WE WANT TO DO SOMETHING A LITTLE BIT DIFFERENT SO WE CAME UP WITH THE CONCEPT IN KENT IS GOING TO GET INTO IT A LITTLE BIT MORE BUT THE THRUST OF IT WAS REALLY DIAL-UP. THE THRUST OF IT WAS TO GET EVERYBODY OUT THERE, EVERYBODY OUT THERE IN FAULT. GET EVERYBODY TO A POINT WE ARE TALKING ABOUT WHAT DO WE NEED TO GET DONE, WHAT ARE THE PROBLEMS? HOW ARE YOU POTENTIALLY, MAYBE NOT SOLVE THEM BUT LET'S TALK ABOUT THEM. LET'S GET THEM OUT IN THE OPEN. SO THAT WAS THE PRECEPT. WE ALSO CREST SOME OF THE WEB 2.0 TECHNOLOGIES SO MOST OF YOU ARE FAMILIAR WITH LEWICKE. WE ARE TRYING TO GET EVERYBODY TO WORK WITH EACH OTHER, TALK WITH EACH OTHER, DISCUSS PROBLEMS. SOME OF THE OTHER THINGS WE STARTED LOOKING AT, WELL CASE OEFELEIN BRUCE THESE NEW TECHNOLOGIES WITH IS THAT MEAN FOR THE PEOPLE WHO ARE IN A CONFERENCE? GUESS WHAT? KNOWS LIGHTS DIES. THAT IS PROBABLY THE FIRST THING, OKAY? WE ARE GOING TO KEEP THIS OPEN AND WE ARE GOING TO MAKE SURE THAT EVERYBODY UNDERSTANDS FROM THE BEGINNING, SO WHAT WERE THE FOUR CONFERENCES BEFORE THIS FANTASTICS DIVER CONFERENCE? WE HAVE INFORMATION SHARING EARLIER IN THE YEAR FOLLOWED BY IDENTITY AND ACCESS MANAGEMENT AND NEAR AND DEAR TO ALL OF OUR HEARTS BUT THEN OUR JOBS, LIGHTS AND EVERYTHING WE DO ON A DAILY BASIS. INFORMATION ASSURANCE, THE GUYS WE CAN DO A THING WITHOUT INFORMATION ASSURANCE. IT HAS TO BE EMBEDDED, HAS TO BE PART OF WHAT WE THINK, WHAT WE DO AND WHAT WE SAY AND FINALLY NOW WE ARE GOING TO DO CYBER SOLUTIONS. WITHIN CYBER SOLUTIONS TODAY WE ARE GOING TO HAVE FOR TERRIFIC PANELS. OF COURSE YOU ARE ALL AWARE WE HAVE GOT SOME ABSOLUTELY FANTASTIC PLENARIES. WE ARE GOING TO HAVE EVEN SOME OF THE BEST PEOPLE YOU CAN THINK ABOUT TALKING ABOUT CYBER AND SOME OF OUR TOWN HALLS. THIS IS GOING TO BE ONE OF THE RACIST EXPERIENCES ANY OF YOU HAD TALKING ABOUT CYBER. SO WHAT I WANT YOU TO DO FIRST OF ALL IS GET AS EXCITED AS I AM IN CASE YOU CAN'T TELL, AND LET ME JUST BRIEFLY TELL YOU A LITTLE BIT ABOUT THE PANELS. SO, WE HAVE GOT THE INTERDEPENDENCY OF CYBERSECURITY WHAT THAT REALLY MEANS IS KIND OF RECOGNIZING THE THREAT. IT IS IN A DEPENDENT UPON SOME OF THE DIFFERENT THINGS THAT WE DO ON A DAILY BASIS AND YOU KNOW WHAT? IT IS NOT JUST WHAT WE DO WITH THEIR JOBS. IT IS WHAT WE DO WE LIVE, IT IS WHAT WE DO ONE OF THE DROP OF OUR KIDS TO SCHOOL. IT IS WHAT WE DO WANT TO TURN OFF THE TELEVISION THAT NIGHT TO LISTEN TO THE NEWS. WE ALL HAVE INTRICATE PIECES OF WHAT IS THAT CYBER INFRASTRUCTURE THAT SUPPORTS THIS ON A DAILY BASIS. WE WANT TO THINK ABOUT THAT. THE OTHER PANEL ITSON ENTER DEPENDENCY OF CYBERSECURITY, FORMULATING A COMMON RESPONSE. I THINK THE TOUGHEST THING YOU GUYS ARE GOING TO HAVE THIS FIGURING OUT WHICH ONE OF THE PANEL'S YOU WANT TO SIT IN IT AT ANY POINT IN TIME. POKEY PREDICABLE CLUBS ALONG WITH THE. THE NEXT TRACK IS GOING TO BE HOW TO HARNESS THE CYBER FUTURE. ALL OF US WANT TO KNOW, YOU TALK ABOUT OUR KIDS, ARE TEENAGERS, ARE STUDENTS THAT ARE IN COLLEGE. HOW THEY COMMUNICATE? WHAT DO THEY CONSIDER TO BE SECURITY? WHAT DO THEY CONSIDER TO BE SICK HERE? HOW DID THEY LOOK TO THEIR LIVES? HOW DID THEY LOOK AT WHAT THEY DO AND WHAT THEY ARE GOING TO BE DOING IN THE FUTURE? HOW DID THEY ATTEND CLASS? HOW TO THE SHOP? HOW DID THEY INTERRELATE WITH THEIR PARENTS AND THEIR FRIENDS? IT IS SO MUCH DIFFERENT FROM WHAT MOST OF US REMEMBER AND HOW MUCH DIFFERENT IS IT GOING TO BE WHEN THOSE PEOPLE ARE IN OUR POSITIONS? WHAT KIND OF CHALLENGES ARE THEY GOING TO HAVE AND HOW ARE WE GOING TO PREPARE THEM TO BE ABLE TO ANSWER THOSE? THESE ARE JUST TERRIFIC. THESE ARE SUCH WONDERFUL ISSUES THAT WE REALLY NEED TO CONFRONT AT THIS POINT. AND THEN ONE OF THE REALLY EXCITING AREAS, CYBEROPERATIONS AND IRREGULAR WARFARE. WE CAN PROBABLY GO ON FOR A LONG TIME IN THAT AREA BUT WE ALL RECOGNIZE IT IS THE REAL WORLD OUT HERE MIDGUT PEOPLE, WE OF THE ORGANIZATIONS, WE OF THAT COUNTRY'S OR CONCERNED ABOUT WHO WE ARE, WHERE WE ARE AND WHAT WE DO SO IS ANOTHER AREA WE WANT TO MAKE SURE WE ARE PREPARED TO WORK WITH, PREPARED TO DEFEND OURSELVES AND PREPARED TO MOVE FORWARD INTO WHAT WILL BE SECURE AND PROSPEROUS FUTURE FOR THE UNITED STATES. SO, GIVEN THAT I THINK I HAVE PROBABLY TOLD YOU ENOUGH ABOUT, TO GIVE YOU A LITTLE BIT OF A TASTE OF SOME OF THE THINGS THAT YOU ARE GOING TO EXPERIENCE OF THE NEXT COUPLE OF DAYS AND WHAT I WOULD LIKE TO DO NOW IS HADDON DID OVER TO KENT SCHNEIDER. HE IS GOING TO GIVE YOU A BIG STRONG LAY OUT IN TERMS OF WHAT WE ARE GOING TO BE DOING OVER THE NEXT COUPLE OF YEARS. THANK YOU. [APPLAUSE] [INAUDIBLE CONVERSATIONS]
00:08:41	>>	OKAY, GOOD MORNING. WELL, WELCOME TO THE FOURTH IN THE HOUR SOLUTIONS SERIES THIS YEAR. KAT HAS TOLD YOU ABOUT THE PROGRAM. I'M NOT GOING TO DO THAT. SHE DID TELL YOU AND I'M GOING TO EMPHASIZE THAT THIS IS ALL ABOUT INTERACTION SO THIS IS NOT A ONE-WAY PROCESS. IN ORDER FOR THIS TO WORK YOU HAVE TO PARTICIPATE, SO WE WANT YOU TO ASK QUESTIONS. WE WANT YOU TO GENERATE DIALOGUE OVER THE COURSE OF THE DAY. THIS IS PROBABLY ONE OF THE FEW CONFERENCES HE WILL GO TO WHERE PEOPLE WILL NOT ASK YOU TO TURN OFF YOUR PDA'S. WE WOULD ASK YOU TO PUT THEM ON STUN, BUT WE WANT TO YOU TO USE THEM AND WE WANT YOU TO BE IN THE SOLUTIONS DISCUSSION GROUP AND GENERATING DIALECT OVER THE COURSE OF THE PANEL, THE TRACKS AND ALL OF THE SESSIONS OVER THE COURSE OF THE DAY. I WANT TO THANK THE TECHNOLOGY COMMITTEE WHO WORKS SO HARD TO PUT ON THIS PROGRAM. I WANT TO THANK OUR GOVERNMENT CO-SPONSORS, THE JOINT STAFF, JAY THREE, G5 NJ SIX LIVE WORKED ON THIS AND YOU'LL BE HEARING FROM ALL OF THEM TOMORROW, WHEN WE HAVE A TOWN HALL MEETING WITH DJ3, DJ6 AND I SOOPERS CIETC THEIR SUPPORT. ALSO WANT TO RECOGNIZE OUR SPONSORS, REPRESENTING BOOZ ALLEN HAMILTON IS NATALEE GIBBONS WHO IS THE VICE PRESIDENT DARRAH AND ALSO IS OUR VICE CHAIRMAN OF THE BOARD THAT AFCEA. GIB DENNING IS CHEAT TECHNOLOGICAL OFFICER OF CNCA AND HAS BEEN VERY MUCH A PARTICIPANT IN THIS PROCESS. BOB IS DIRECTOR OF THE ZENIA. RICH ARNOLD, DIRECTOR WITH GENERAL DYNAMICS. LEE HOLCOMBE IS VICE PRESIDENT OF CENTER FOR CYBER-- KEVIN SCULLY VICE PRESIDENT OF NORTHROP GRUMMAN AND THE INFORMATION-- I AM SORRY IN THE MISSION SECTOR AND KEITH WROTE, THE CHIEF TECHNOLOGY OFFICER FOR KINETIC NORTH AMERICA SO THANKS TO ALL OF OUR SPONSORS. JUST ONE MORE THING, AND THAT IS THAT WE FORMATTED THIS MORNING SO THAT THERE IS TIMING BETWEEN THE TWO PLENARY SPEAKERS FOR YOU TO SPEND SOME TIME WITH THE EXHIBITS OUTSIDE. THEY ARE HERE ONLY TODAY SO PLEASE USE THE TIME TO INTERFACE WITH THEM. WE ARE GOING TO GIVE YOU NEARLY AN HOUR BETWEEN THE TWO PLENARY SPEAKERS WHICH SHOULD BE ENOUGH TIME FOR YOU TO SPEND SOME TIME WITH THEM. WELL I AM NOT DELIGHTED TO INTRODUCE OUR PLENARY SPEAKER. THE HONORABLE MICHAEL CHERTOFF IS THE SECRETARY OF HOMELAND SECURITY. HE IS THE SECOND SECRETARY OF THE U.S. DEPARTMENT OF HOMELAND SECURITY AND BECAME THE SECRETARY ON FEBRUARY 15, 2005. HE LEFT A AND LIFETIME TENURE TO DO THIS JOB AND TO HELP PROTECT OUR HOMELAND. SO, WITHOUT FURTHER ADO LET ME INTRODUCE THE HONORABLE MICHAEL CHERTOFF, SIR. [APPLAUSE]
00:12:23	>>	I AM GOING TO APOLOGIZE. I HAVE A LITTLE BIT OF A COLD. HANDS I WANT TO THANK YOU FOR THAT INTRODUCTION OF THE WANT TO THANK YOU ALL OF YOU FOR TURNING A TO HEAR ME. AGAIN, VERY GOOD ATTENDANCE I SEE. I WANT TO THANK THE ASSOCIATION FOR INVITING ME TO SPEAK ON A TOPIC THAT I KNOW IS OF GREAT CONCERN TO EVERYBODY WHO OPERATES IN THE FIELD OF CYBER COMMUNICATIONS AND COMPUTER ACTIVITY WHICH IS JUST ABOUT EVERYBODY. AS WE HAVE DISCUSSED FOR QUITE A BIT OF THE LAST YEAR, ONE OF THE MOST PRESSING NEEDS WE FACE AS A NATION IS THE NEED TO SECURE CYBERSPACE AND TO PROTECT OUR NATION'S SIDERS SYSTEMS AND INFRASTRUCTURE, WHETHER THE GOVERNMENT, MILITARY OR CIVILIAN DOMAINS. NOW, WHEN THE CHALLENGING THINGS HERE IS THIS IS NOT AN EXCLUSIVELY THE RESPONSIBILITY. AND IT IS NOT EXCLUSIVELY A PRIVATE SECTOR RESPONSIBILITY. BECAUSE OF THE WAY IN WHICH WE NETWORK ACROSS CYBERSPACE AND BECAUSE MOST OF THE ASSETS IN THE PEOPLE INVOLVED ARE NOT WITHIN THE GOVERNMENT EMPLOYEE, WE HAVE TO ADDRESS THIS PROBLEM THROUGH A PARTNERSHIP RICA WITH THE BASICALLY USE THE NETWORK TO PROTECT A NETWORK. AND SO WHAT I WOULD LIKE TO DO IS WITH A PARTICULAR FOCUS ABOUT WHAT WE ARE DOING AT THE DEPARTMENT OF HOMELAND SECURITY, TAUGHT AT THE STRATEGIC LEVEL ABOUT CYBER THREATS AND WHAT WE ARE DOING TO REDUCE THE LIABILITIES TO THOSE THREATS AND ALSO HOW WE HOPE TO EXPAND THEIR PARTNERSHIPS ACROSS THE GOVERNMENT AND THE PRIVATE SECTOR. BUT, BEFORE I GET SPECIFICALLY INTO THE ISSUE OF CYBER THREATS LET ME STAND BACK AND LOOK AT THREATS IN GENERAL. THE WHOLE PURPOSE OF THIS DEPARTMENT AND THE WHOLE PURPOSE OF THE DEPARTMENT DEFENSE IS TO PROTECT THIS COUNTRY AGAINST THREATS, WHETHER THEY BE FROM CYBERSPACE OR IN THE PHYSICAL DOMAIN AND WE DON'T NEED TO BE REMINDED AS WE WERE TWO WEEKS AGO IN MUMBAI THAT THOSE THREATS REMAIN VERY URGENT. IN THIS RESPECT I HAVE TO SAY THAT LOOKING BACK ON THE LAST FOUR YEARS AS WE WANT TO DO AT THIS STAGE OF THE ADMINISTRATION, IT IS REMARKABLE, AND DIOS TOUCH BECAUSE WE HAVE SIX MORE WEEKS TO GO, BUT IT IS REMARKABLE THAT WE HAVE IN FACT MANAGED TO KEEP THIS COUNTRY SAFE IN THE PERIOD OF TIME THAT HAS ELAPSED SINCE 9/11. THIS IS IN MY FEW-- [APPLAUSE] THIS IS IN MY VIEW DUE TO THE LEADERSHIP OF THE PRESIDENT. THIS PRESIDENT WAS ON WATCH ON SEPTEMBER 11TH AND PLEDGED THAT NEVER AGAIN WOULD WE HAVE AN ATTACK LIKE THAT SUCCESSFULLY CARRIED THAT BEGINS THIS COUNTRY AND ALL THOSE EFFORTS HAVE BEEN MADE, SOME KNOWN PUBLICLY AND SOME NOT KNOWN PUBLICLY, NONE OF THEM HAVE SUCCEEDED HERE AS THEY HAVE PLACES ABROAD BECAUSE OF A RANGE OF STRATEGIES UNDERTAKEN BY THE PRESIDENT, WHETHER IT WAS TAKING THE FIGHT OVERSEAS AND KILLING AND CAPTURING LEADERS OF THE AL QAEDA, OR REORGANIZING THE INTELLIGENCE COMMUNITY TO ALLOW US TO COLLECT AND INTEGRATE INFORMATION MORE EFFECTIVELY, OR WHETHER IT WAS ENABLING US OF THE DEPARTMENT OF HOMELAND SECURITY TO STRENGTHEN THE BORDERS, TO GET MORE INFORMATION IN BIOMETRICS SO WE HAD A BETTER OPPORTUNITY TO IDENTIFY THREATS COMING INTO OUR COUNTRY. ALL OF THESE WERE PART OF THE PRESIDENT'S COMMITMENT TO KEEPING THE COUNTRY SAFE. .. MMM qY THE RESIDES A MOVE A VIRTUAL DOMAIN THE MORE IMPORTANT IS TO PROTECT THE DOMAIN. JUST TO MAKE A FEW EXAMPLES, WE SAW SERVICE ATTACK AGAINST HIM ESTONIA, WHICH RESULTED IN SHORT TERM BUT THE VERY SIGNIFICANT SHUTDOWN AND GORMAN OPERATIONS ARE EXPERTS AT U.S. CIRCUIT WORKED WITH THE ESTONIANS AND OTHERS IN ORDER TO HELP REBUILD THE SYSTEM. THAT WAS AN ILLUSTRATION OF WHAT A NATION STATE KIM EXPERIAN SWINDEL OR CYBERATTACK. IN THE RUN-UP TO THE STRUGGLE IN THE BATTLE BETWEEN RUSSIA AND GEORGIA OVER OSSETIA THERE WAS A PRECEDING EFFORT IN THE DENIAL OF SERVICE OR A WAVE OF DENIAL OF SERVICE ATTACKS BY LET US SAY SYMPATHIZERS TO THE RUSSIAN SIDE OF THE DISPUTE THAT WAS A PRE-LEWD AND ADJUNCT TO THE MILITARY ATTACKED WHERE RUSSIAN TROOPS ENTERED GEORGIA, AND I THINK THIS IS A HORRIBLE PICTURE OF WHAT IS TO COME. THE USE OF CYBER ATTACKS ASK PREPARING THE BATTLEFIELD SO TO SPEAK IN THE GRADING OF THEIR COMMUNICATION COMMAND AND CONTROL IN ORDER TO MAKE IT EASIER FOR ARMED TROOPS TO ACTUALLY SEIZE AND HOLD AN OBJECTIVE. AND ON A LESS NATION STATE ORIENTED LEVEL, IN THE FIELD OF CRIMINALITY IN AUGUST THE SECRET SERVICE BROUGHT DOWN THE LARGEST PROSECUTION OF IDENTITY THEFT I THINK IN HISTORY. IT INVOLVED A RING THAT STOLE APPROXIMATELY 140 MEMBERS BY CAPTURING THE MEMBERS AS THEY WERE MOVING OVER WIRELESS NETWORKS BETWEEN MAJOR RETAILERS. AND THIS AGAIN WAS A CYBERATTACK. THE DENIAL OF SERVICE, BUT IT WAS IN FACT A STEEL OF A VIABLE ECONOMIC INFORMATION. WHAT WE NOW OF COURSE IS THAT IN THE REALM OF CYBER, WE CAN HAVE A TAX THAT EXFIL TREE INFORMATION AS A MATTER OF ESPIONAGE WHETHER IT BE CORPORATE ESPIONAGE OR GOVERNMENT ESPIONAGE WE CAN HAVE DENIAL OF SERVICE ATTACKS. WE TO HAVE CORRUPTION OF NETWORK, CORRUPTION OF DATA. OBJECT CONFUSION AND UNCERTAINTY AND STRIKING AT THE TRUST WHICH IS NECESSARY FOR FINANCIAL INSTITUTIONS. IF YOU NEED TO HAVE ANY ILLUSTRATION OF HOW CONSEQUENTIAL THAT CAN BE IF YOU LOOK AT THE LAST SIX MONTHS, THE LOSS OF TRUST IN OUR FINANCIAL AND INSTITUTIONS IN THE EVALUATION OF ASSETS WHICH OF COURSE IS NOTHING TO DO WITH THE CYBERATTACK NEVERTHELESS ILLUSTRATES THAT WITHOUT A FOUNDATION OF TRUST AND CONFIDENCE THERE IS A VERY DRAMATIC DEGRADATION OF THE ABILITY TO HAVE ECONOMIC TRANSACTIONS OCCURRED IN THE WAY WE NEED TO HAVE THEM TO HAVE A ROBUST ECONOMY. SO IMAGINE IF INSTEAD OF HAVING PROBLEMS WITH THE VALUATION OF ASSETS WE HAVE HAD SOMEONE CORRUPTING DATA AND BANKS OR FINANCIAL THE INSTITUTIONS RAISING QUESTIONS ABOUT PEOPLE, WHETHER PEOPLE'S MONEY WAS SAFE OR WHETHER PEOPLE'S BANK ACCOUNTS ACCURATELY REFLECTED THEIR ASSETS. HOW LONG DO YOU THINK IT WOULD BE BEFORE PEOPLE STARTED TO PULL THEIR MONEY OUT OF FINANCIAL INSTITUTIONS? I DON'T NEED TO GET TO VIVID. I THINK YOU GET THE POINT. THIS IS A REALLY CRITICAL AREA IN WHICH WE HAVE TO OPERATE. THE PRESIDENT IS ACUTELY AWARE OF THIS, AND THAT'S WHY AFTER CONSIDERABLE AMOUNT OF DISCUSSION ABOUT THIS TOPIC AND BREATHING AND STUDYING HE LAUNCHED A COMPREHENSIVE NATIONAL CYBER INITIATIVE EARLIER THIS YEAR. THIS IS AN EFFORT FOR THE FIRST TIME. TO TAKE CYBER SECURITY OUT OF SIMPLY PROVIDING A FORUM FOR THE PRIVATE SECTOR TO COME IN AND EXCHANGE INFORMATION AND GIVE SOME ASSISTANCE FROM THE CIVILIAN DOMAIN. BUT TO INTEGRATE ALL OF THE TOOLS AND CAPABILITIES OF NATIONAL POWER IN ORDER TO MAKE THEM AVAILABLE, FIRST OF ALL TO THE GOVERNMENT DOMAIN TO MAKE SURE WE ARE PROTECTING OUR OWN, AND SECONDARILY, TO SEE IF WE CAN MAKE THEM AVAILABLE IN A SOMEWHAT REFINED FORM TO THE PRIVATE SECTOR TO HELP THE PRIVATE SECTOR DO WHAT IT HAS TO DO. UNDER THE PRESIDENT'S INITIATIVE THE DEPARTMENT OF HOMELAND SECURITY HAS ELITES RESPONSIBILITY TO PROTECT FEDERAL CIVILIAN DOMAINS AND NETWORKS. AND TO SYNCHRONIZE THE EFFORTS TO PROTECT ALL THE FEDERAL NETWORKS AND MAKE SURE ALL ARE COORDINATED TOGETHER AS WELL AS TO BEGIN THE PROCESS OF WORKING WITH THE PRIVATE SECTOR, OR SHALL I SAY THE MULTIPLE ELEMENTS OF THE PRIVATE SECTOR, TO CONFIGURE CYBER SECURITY IN A WAY THAT MEETS THE PARTICULAR NEEDS OF EACH OF THE 18 PRINCIPAL SECTORS OF THE U.S. ECONOMY. SO, LET ME TAKE YOU AT A GENERAL LEVEL, HIGH-ALTITUDE THROUGH THE CORE ELEMENTS OF THIS INITIATIVE AND WHAT WE SEEK TO ACCOMPLISH. FIRST, WE HAVE TO ESTABLISH FRONT LINES OF DEFENSE IN OTHER WORDS REDUCE CURRENT VULNERABILITIES AND PREVENT INTRUSION. SECOND, WE HAVE TO MAKE SURE THAT WE ARE DEFENDING AGAINST THE FULL SPECTRUM OF THREATS. EVERYBODY THINKS OF CYBER SECURITY IN TERMS OF NETWORK ATTACKS, BUT IN FACT THERE ARE OTHER FALL RELEASE WHICH WOULD BE EXPLOITED AND CALLS EQUAL AMOUNT OF DAMAGE AND WE HAVE TO LOOK INTO THE ENTIRE ARCHITECTURE TO MAKE SURE THAT WE ARE IN FACT PROTECTING OURSELVES ADEQUATELY. FINALLY WE HAVE TO SHAPE THE FUTURE ENVIRONMENT BY EDUCATING THE NEXT GENERATION OF FIRE PROFESSIONALS AND BY LOOKING TO SEE WHETHER WE CAN SPUR THE PET TECHNOLOGY TO PROTECT OUR CYBER ASSETS IN THE FUTURE. THROUGHOUT ALL OF THIS I WANT TO EMPHASIZE WE WOULD BE VERY SENSITIVE ABOUT PRIVACY AND CIVIL LIBERTY. WE HAVE NOT LOOKED AT THIS AS AN OPPORTUNITY TO BIGFOOT THE PRIVATE SECTOR OR HAVE A MASSIVE FEDERAL PRESIDENT SITTING ON THE INTERNET AS SOME OTHER COUNTRIES HAVE SOUGHT TO DO IN POLICING THE INTERNET THAT COMES INTO THEIR COUNTRIES. THAT IS NOT THE APPROACH WE ARE PROPOSING. SO LET ME TAKE YOU THROUGH EACH OF THESE ELEMENTS OF THE INITIATIVE. FIRST, THE FRONT LINES OF DEFENSE. WELL, OUR CONCERN OF COURSE FIRST AND FOREMOST AS I SAID IS LET'S GET OUR OWN HOUSE IN ORDER. AND WE RECOGNIZE THAT FOR A CONSIDERABLE PERIOD OF TIME, PUTTING ASIDE THE MILITARY DOMAINS, WHICH ARE PROTECTED BY THE PART OF DEFENSE THE SEBELIUS DOMAIN AND THE GOVERNMENT HAVE HAD LITERALLY THOUSANDS OF POINTS OF ACCESS TO THE INTERNET. AND WE NEED TO REDUCE THE NUMBER OF TRUST AND INTERNET CONNECTIONS SO CAN GET A HANDLE ON THE FLOW OF TRAFFIC THAT IS COMING IN AND OUT OF THE FEDERAL GOVERNMENT DOMAIN. THAT MEANS AS WELL THAT WE HAVE TO INCREASE OUR CAPABILITIES AT U.S. SERP AND ACROSS THE ENTIRE GOVERNMENT DEPARTMENT AGENCY NETWORK TO MAKE SURE WE HAVE STANDARDS, 24/7 SWEETEN OF A PROMPT RESPONSE WHERE WE DETECT SOMETHING, AND WE NEED TO COORDINATE ACROSS THE INTERAGENCY PROCESS THROUGH THE NATIONAL CYBER SECURITY CENTER WHICH HAS JUST BEGUN TO BE STIRRED UP TO MAKE SURE THAT WE ARE HAVE A KIND OF SHARED OR FEDERATED ACTIVITY OR COORDINATION BETWEEN THE MILITARY, THE INTELLIGENCE AND THE CIVILIAN DOMAIN SO WE CAN GET THE BENEFIT OF THE INFORMATION AND TECHNIQUES ON THE OTHER SIDE OF THE WRONG SO TO SPEAK AND WE CAN ALSO SHARE SOME OF WHAT WE SEE WITH THE PEOPLE IN THE INTELLIGENCE COMMITTEE AND DEFENSE. PART OF THIS OF COURSE IS CONTINUAL IMPROVEMENT OF THE INTRUSION DETECTION SYSTEMS THAT WE HAVE. WE HAVE FEINSTEIN IN PLACE NOW, THAT IS NOT IN ITS ORIGINAL FORM WAS NOT A REAL TIME INTRUSION PROTECTION SYSTEM. EINSTEIN TO WHICH IS BEING DEPLOYED AT THIS POINT IS IN FACT REAL-TIME SYSTEM THAT WE USE PASSIVE SENSORS TO DETECT MALICIOUS CODE AND CRITICAL BASE SIGNATURES AND REAL-TIME SO THAT WE CAN GIVE REAL-TIME NOTICE AND WARNING RATHER THAN BEA FORENSIC ANALYSTS AFTER THE ATTACK HAS OCCURRED. FINALLY, WHEN WE LOOK TO THE DEVELOPMENT OF FEINSTEIN 3.0 WHICH WOULD BE THE NEXT STEP WE WOULD BE A PREVENTION THE ABILITY TO WHAT ACTUALLY BLOCK HOUSE WELL AS WARREN ANY GOVERNMENT DOMAINS. THAT'S OF COURSE NETWORK ATTACKS IN TERMS OF THE GOVERNMENT ITSELF BUT LET'S LOOK AT THE BROAD SPECTRUM. THERE ARE TWO OTHER MAJOR WAYS IN WHICH PEOPLE THAT COMPROMISE THEIR ASSETS. FIRST IS SOMEONE ON THE INSIDE SIMPLY COMES IN, STICKS A DISCORD FROM DR., STEALS INFORMATION, STEALS PASSWORDS AND THEN USE THAT AVENUE TWO EXFILTRATED INFORMATION AND DAMAGE IS FIBER NETWORK. THIS BY THE WAY PEOPLE TELL ME IS LIKELY TO BECOME AN INCREASING RISK IN AN ENVIRONMENT WHERE PEOPLE ARE GETTING I GUESS THEY SAY DOWNSIZED IS THE EUPHEMISM BECAUSE SOMETIMES PEOPLE ARE NOT HAPPY ABOUT HAVING THEIR JOBS TERMINATED AND THEY MAY DECIDE TO MANIFEST ON UNHAPPINESS IN A DESTRUCTIVE WAY. SO, THIS IS LOW-TECH STUFF, BUT IT IS EQUALLY IMPORTANT. FINALLY I WANT TO EMPHASIZE IMPORTANCE OF PROTECTING THE GLOBAL SUPPLY CHAIN. THERE WAS A STORY IN "THE WALL STREET JOURNAL" ABOUT MAYBE A ONE OR SIX WEEKS AGO ABOUT PEOPLE WHOSE FINANCIAL DATA WAS STOLEN BECAUSE IN THE CIRCUITS OR IN THE CHIPS IN SOME ATM MACHINES IN EUROPE SOMEONE HAD IMBEDDED IN ESSENTIALLY A BEACON, WHICH WOULD PERIODICALLY SEND A AROUND THE WORLD INFORMATION THAT HAD BEEN CAPTURED WHEN PEOPLE KEYSTROKE IN. NOW AGAIN THAT IS A COMPROMISE TO OF HARD WORK AND COMPROMISE OF SOFTWARE THAT'S ACTUALLY IN THE MANUFACTURING PROCESS. AND IN A GLOBAL ENVIRONMENT WHERE THE GLOBAL SUPPLY CHAIN, QUALITY ASSURANCE AND INTEGRITY INSURANCE IS GOING TO BECOME AN INCREASING CHALLENGE. AGAIN AS POSING ONE OF THE DOORS TO A THREAT. FINALLY, WE NEED TO SHAPE THE ENVIRONMENT. CONTINUE TO EDUCATE AND RECRUIT AS SOMEBODY TOLD ME SOME TIME BACK IN SILICON VALLEY THAT YOU GET LOTS OF SMART KIDS WHO COME OUT OF SCHOOL WHO WANT TO DESIGN SOFTWARE AND NEW SYSTEMS. NOT THAT MANY ARE INTERESTED IN SECURITY. BUT I THINK THE INTERESTING TO THEM AND SECURITY AND PROTECTION OF WHAT IS BEING DESIGNED HAS GOT TO BE A TOP PRIORITY. AND ALSO SHOULD BE SOMETHING FRANKLY THAT WILL EXCITE PEOPLE WHO HAVE INTELLECTUAL PASSION COMPUTERS. WE HAVE TO CONTINUE ITS RESEARCH AND DEVELOPMENT. AND MOST IMPORTANT, WE HAVE TO ENGAGE THE PRIVATE-SECTOR IN COOPERATION. HOW WE DO THIS? WELL, INSTEAD OF REINVENTING THE WHEEL, WE'VE DECIDED TO TAKE THE WHEEL WE HAVE AND CONFIGURE THEM FOR THIS NEW CHALLENGE. WE HAVE 18 ECONOMIC SECTORS THAT WE HAVE BEEN WORKING WITH OVER THE PAST SEVERAL YEARS THROUGH OUR NATIONAL INFRASTRUCTURE PROTECTION PLAN WHICH IS A PLAN THAT EVERYBODY AGREED TO EACH OF THE SECTOR'S WHETHER ITS FINANCIAL, I.T. COMMUNICATIONS OR COMMERCIAL EVERYBODY PARTICIPATED. AND WE NOW HAVE COORDINATING COUNCIL'S THAT ARE A PIPELINE THAT WORK WITH EACH OF THESE SECTORS AND THAT IS WHEN TO BE A MAJOR VEHICLE FOR OPERATIONAL COORDINATION AND COOPERATION WITH THE PRIVATE SECTOR. WE NEED TO IDENTIFY LONG-TERM AND SHORT-TERM OBJECTIVES AND WITH A CROSS SECTOR CYBER SECURITY WORKING GROUP THAT WE HAVE SET UP WE NEED TO FACILITATE INFORMATION SHARING BACK AND FORTH. WE NEED TO MATURE WITH THE THREATS YOU'RE SEEING ARE IN THE PRIVATE SECTOR AND MAKE SURE WHAT WE ARE SEEING THAT WE CAN RELEASE TWO YOU PERHAPS IN SOMEWHAT REFINED FORM THAT YOU CAN USE TO SECURE HORSE SYSTEM BETTER. AGAIN, THIS IS NOT GOING TO BE ONE-SIZE-FITS-ALL. THE KIND OF CONCERNS YOU HAVE IN FINANCIAL INSTITUTIONS IS NOT THE SAME THING YOU HAVE FOR EXAMPLE WITH ENERGY INSTITUTIONS OR STATUS SYSTEMS, SAID THAT IS WHY WE WANT TO USE A TAYLER APPROACH. BUT I DO WANT TO EMPHASIZE SOMETHING I THINK IT'S CRITICALLY IMPORTANT. I THINK THIS CANNOT BE A MANDATE. I THINK OF THE FEDERAL GOVERNMENT COMES OUT AND SAYS YOU MUST PUT THIS ON YOUR SYSTEM WE ARE GOING TO EXPERIENCE A BACKLASH. I THINK THERE WILL BE STRONG INCENTIVES TO PUT THINGS ON SYSTEMS AND HAVE PROTECTION. I REMEMBER IN Y2K COMPANIES GOT WELL IN ADVANCE OF THE CLOCK KIDDING MIDNIGHT IN THE YEAR 2000 ABOUT WHAT THEY NEEDED TO DO FROM A LIABILITY STANDPOINT TO PROTECT THEMSELVES SO I THINK THERE WILL BE A MARKET THAT IS READY, WILLING, AND ABLE TO WORK WITH US IN THIS EFFORT. BUT THERE ARE GOING TO BE SOME PEOPLE WHO DON'T WANT TO DO THAT AND I DON'T WANT TO TELL PEOPLE THAT THEY HAVE TO ALL BEEN TO THIS SYSTEM. IF YOU ARE SO CONCERNED ABOUT THE GOVERNMENT YOU WANT TO KEEP YOUR SYSTEM AWAY FROM THE GOVERNMENT, I THINK THAT, YOU KNOW, YOU SHOULD BE ENTITLED TO DO SO. OBVIOUSLY HE WOULD HAVE TO LIVE WITH THE CONSEQUENCES. IT'S AN AREA WE HAVE TO PROCEED WITH A GREAT DEAL OF DELICACY, AND IT REALLY IS IN MY MIND A SET OF NETWORK RELATIONSHIPS WE SHOULD BUILD FROM THE GROUND UP, NOT IMPOSE FROM THE TOP DOWN, SO IT'S A KIND OF INTERIM PROCESS I THINK WE ARE TALKING ABOUT. NOW THIS ISN'T ALL GOING TO HAPPEN BY THE TIME WE LEAVE OFFICE AND A LITTLE LESS THAN SIX WEEKS. AND I DON'T THINK IT WOULD BE A SOOTHSAYER SAYING THIS IS GOING TO GET A LOT OF ATTENTION IN THE NEXT ADMINISTRATION, BUT I DO THINK THAT WE HAVE LAUNCHED A STRATEGY THAT IS ROBUST, THAT HAS LAID OUT THE MAJOR PATHWAYS AND POINTED THE RIGHT DIRECTION AND THAT HAS JUMP-START THE PROCESS OF MOVING US TOWARD A MORE SECURE CYBERSPACE. WE HAVE GOT A LOT OF GOOD COORDINATION UNDER OUR BELT AND WE'VE MADE A LOT OF PROGRESS AND WE LOOK FORWARD TO CONTINUING TO WORK WITH YOU ON SECURING THE ASSETS OF THE 21ST CENTURY NAMELY THE COMPUTER NETWORKS. THANK YOU VERY MUCH. [APPLAUSE] AND NOW I'M HAPPY TO TAKE SOME QUESTIONS. IF YOU TELL ME WHO YOU ARE THE WILL BE HELPFUL. THERE IS A MICROPHONE THEY'RE GOING TO PASS DOWN AT SOME POINT.
00:31:31	>>	I'M MARTY FROM THE WAVE SYSTEMS. WHAT DO YOU THINK ABOUT EMMETT SUGGESTION BY VARIOUS GROUPS THAT THE PRESIDENT HAVE A CYBER SECURITY TEAM BE APPOINTED DIRECTLY TO HIM?
00:31:41	>>	THIS REFERS TO THE COMMISSION THAT WE SET UP BY CSIS TO TALK ABOUT CYBER SECURITY. IT IS A PERSONAL OPINION. I THINK THAT FIRST PEOPLE NEED TO UNDERSTAND THE WHITE HOUSE IN THE INTERAGENCY POLICY-MAKING PROCESS HAS THROUGHOUT WHAT WE HAVE DONE PRETTY WELL AND MAKING SURE THAT THERE IS CROSS AGENCY COORDINATION IN TERMS OF POLICY MAKING. AND IT'S HARD TO ENVISION THAT WOULDN'T BE THE CASE. THAT'S ONE OF THE RULES OF THE WHITE HOUSE IS COORDINATING POLICY MAKING. I THINK THAT IN EVALUATING THE SUGGESTION THERE WILL HAVE TO BE CAREFUL CONSIDERATION PAID TO THE TWO ISSUES. ONE, DO YOU WANT TO GET THE WHITE HOUSE OR AGENCY IN EXECUTIVE OFFICER OF THE PRESIDENT INVOLVED IN OPERATIONAL ENTITY NAMELY MAKING SPECIFIC DECISIONS OPERATIONALLY ABOUT WHAT HAPPENS? TRADITIONALLY, MAYBE THIS IS THE WE'RE IN IN THE COMING OUT THAT HAS BEEN VIEWED AS THE RISKY THING TO DO BECAUSE IT PULLS THE RIGHT HOUSE INTO AREAS WHERE IT'S EXPOSED TO LEGAL ISSUES, OVERSIGHT ISSUES AND OTHER THINGS LIKE THAT OF COURSE EVERYBODY REMEMBERS IT IRAN-CONTRA BACK IN 1986. SO I THINK THAT'S ONE ISSUE. THE SECOND ISSUE IS A THINK IT'S IMPORTANT NOT TO CREATE A THROOP GOLDBERG TYPE OF SCHEMATIC FOR HOW WE MANAGE THINGS. I FOUND MY FOUR YEARS IN WASHINGTON ORGANIZATIONAL AND REORGANIZATIONAL MOVEMENT IS SECOND ONLY TO SPENDING MONEY AS A HOBBY FOR PEOPLE INVOLVED IN POLICY-MAKING. I CAN UNDERSTAND WHY IN A WAY BECAUSE THE ACTUAL HARD WORK OF THE IMPLEMENTATION WHICH IS A VERY DETAILED ORIENTED AND CAN BE FRUSTRATED DOESN'T LEND ITSELF TO A LITTLE ELFGIN DISCUSSION. I WOULD GO SLOW MAYBE SOME ENHANCED CAPABILITIES OF THE WHITE HOUSE OR ENHANCED INVOLVEMENT YOU WANT TO HAVE. YOU CERTAINLY DO WANT TO HAVE I THINK HIGH-LEVEL WHITE HOUSE PUSH BEHIND THIS INITIATIVE AND NO-NONSENSE, NO KIDDING DIRECTION TO ALL THE AGENCIES TO PLAY TOGETHER WHICH IS WHAT THIS PRESIDENT HAS DONE, WHETHER THE ORGANIZATION WANT TO RECONFIGURE LITTLE BUT I THINK MAYBE A NEW ADMINISTRATION WOULD WANT TO CONSIDER AND SEE WHAT'S OUT THERE AND THEN MAKE A DECISION IN THE FOUR MONTHS OF TIME.
00:34:25	>>	GOOD MORNING, JUDGE THE JUDGE OF CHICAGO SUPPLY IS THE TAX AND IN THE BOOK HE EXPLAINS THAT CYBERATTACK HAPPEN BECAUSE PEOPLE CHOOSE TO SOLVE THESE PROBLEMS. THE HARD PROBLEMS OR THINGS WHICH ARE HARD TO SOLVE THEY LEAVE ALONE. AND THEN THE ENEMY LOOKS AND SAYS OKAY, LET'S LOOK AT THOSE PROBLEMS. MY QUESTION IS TWO WEEKS AGO WHEN YESTERDAY IT CANNOT A REPORT TO DEAL WITH THE ISSUE OF CYBER SECURITY, AND THERE WERE VERY HARSH CRITICISMS ON GOVERNMENT, VERY HARSH. NOW THERE IS A BUDGET I BELIEVE THE $30 BILLION A ADVOCATE FOR PROGRAMS INSIDER SECURITY. THIS IS A TOP-SECRET PROGRAM. HOW DO WE KNOW THE CITIZENS OR THE GOVERNMENT THAT WE ARE NOT DEALING WITH THAT 30 BILLION-DOLLAR BUDGET IN CREATING MORE OF THE SAME SOLUTIONS AND HOPEFULLY WE ARE NOT TACKLING THESE ISSUES, HOW DO WE KNOW THAT WE ARE GOING AFTER THE HARD ISSUES AND TO BE MORE SPECIFIC, HOW DO WE KNOW THAT ENOUGH MONEY IS BEING ALLOCATED TO DEAL WITH BREAK THROUGH NEW TECHNOLOGIES THAT MIGHT BRING SOLUTIONS TO OUR SITUATION?
00:35:49	>>	FIRST WILL I DO AGREE WITH THE PROPOSITION IN GENERAL. I DON'T ITS LIMITED TO GOVERNMENT, TEND TO DEAL WITH, THERE'S A LITTLE BIT OF A TENDENCY TO DEAL WITH PROBLEMS WHEN YOU KNOW THE YOU CAN SOLVE THE PROBLEMS. OF COURSE THERE ARE PROBLEMS YOU CAN'T SOLVE OR CAN SOLVE READILY, AND AGAIN I WANT TO COME BACK AND SAY I THINK ONE OF THE CHALLENGES WE HAVE WITH CYBER SECURITY IS FOR A LONG TIME, AND I LOOKED AT SOME OF THE EARLIER REPORTS, YOU KNOW, EVERYONE SAID WE HAVE TO DO CYBER SECURITY, BUT THERE IS A VAGUE GENERALITY. THEY WERE, YOU KNOW, HAVE TO HAVE MORE LAW ENFORCEMENT AND WORK TOGETHER. WE HAVE TO HOLD HANDS AND SAYING TO BUY OFF. I WAS CONCERNED THAT WE DID NOT HAVE, WE WERE BEING SERIOUS ABOUT THE FACT THERE ARE VERY DIFFICULT CHALLENGES IN THIS LARGELY BECAUSE IT IS A NETWORK SYSTEM. IT'S ONLY AS STRONG AS ITS WEAKEST LINK. AND BECAUSE WE'VE BEEN UNCOMFORTABLE ABOUT THE FACT THE GOVERNMENT HAS TO WORK IN THE PRIVATE DOMAIN HAVE THAT MEANS WE HAVE TO SHARE SOME DEGREE OF SECRETS WITH THE PRIVATE DOMAIN AND IT ALSO MEANS THE PRIVATE DOMAIN HAS TO BE COVERING THE COUPLE OF GOVERNMENT GETTING INVOLVED IN ITS ACTIVITIES WHICH AS YOU KNOW CULTURALLY WHEN YOU DEAL WITH INTERNET THAT IS A REAL, YOU KNOW, KIND OF HAS A CHILLING EFFECT. NOW OBVIOUSLY IN TERMS OF MONEY THE BUDGETS WE DO HAVE CLASSIFIED INTELLIGENCE BUDGETS, AND CONGRESS GETS TO SEE THEM, BUT I THINK THAT'S A PROBLEM ON THE CLASSIFICATION SIDE WHICH IS OUTSIDE OF MY RANGE BY WILL TRY TO ANSWER THE QUESTION THIS WAY. I THINK WHAT MAKES THIS INITIATIVE DIFFERENT FROM THE PAST REPORTS I SAW WAS THE PAST REPORTS ESSENTIALLY ACCEPTED THAT WHAT WAS GOING ON IN THE WORLD OF THE DEPARTMENT OF DEFENSE AND THE INTELLIGENCE COMMUNITY WOULD REMAIN RADICALLY SEPARATED FROM WHAT WAS CALLING ON IN THE CIVILIAN DOMAIN BECAUSE WE COULDN'T FIND A WAY TO BRIDGE THE GAP IN TERMS OF CLASSIFIED MATERIAL OR CONCERNS THAT THE CIVILIAN DOMAINS WOULD FEEL THREATENED BY HAVING TO CLOSE A RELATIONSHIP. AND IN A SERIES OF CONVERSATIONS THAT I HAD WITH PEOPLE ON THE DEFENSE SIDE OF THE INTELLIGENCE SIDE THEY CAME FORWARD AND SAID, AND THIS IS THE GENESIS OF THIS BACK IN 2007, THEY CAME FORWARD AND SAID LOOK THE ACTUALLY THINK WE CAN DO A LOT MORE PARTICULARLY BECAUSE OF THE UNIQUE RELATIONSHIP THE BSA HAS WITH THE PRIVATE SECTOR AND WITH THE DEFENSE CITED THAT WE COULD BREATHE A BRIDGE TO ENABLE US TO ALLOW A LOT OF THE VALUE ON THE VERY, VERY TECHNICAL AND CUTTING-EDGE THINGS BEING DONE ON THE DEFENSE SIDE TO GET THAT CONFIGURED IN A WAY THAT IT COULD BE SHARED WITH THE PRIVATE SECTOR AND CERTAINLY WITH THE CIVILIAN GOVERNMENT DOMAIN. AND SO THAT'S WHY WE ALL GOT VERY PASSIONATE ABOUT THIS, BECAUSE WE SAW THIS AS A GAME CHANGER. THERE WASN'T GOING TO BE A SHYING AWAY FROM WE'RE GOING TO PROBABLY TACKLE IT. THIS REQUIRES A LOT OF HARD WORK. WHEN YOU TALK ABOUT SHRINKING THE NUMBER OF INTERNET CONNECTIONS IT IS HARD BECAUSE EVERYBODY HAS THEIR OWN WAY OF DOING BUSINESS. PEOPLE DON'T WANT TO HAVE TO CHANGE OR GIVE UP THEIR SYSTEM. SO THAT IS WHAT I SAID EARLIER, THE GRINDING IMPLEMENTATION PART WHICH IS HARD AND PERSISTENT. BUT I DO THINK IF YOU LOOK AT THE STRATEGY WILL SEE SOMETHING THAT IS MORE PRECISE AND MORE SYSTEMATIC AND WHEN YOU'VE SEEN PREVIOUSLY. THAT DOESN'T GIVE YOU A WINDOW INTO THE CLASSIFIED SIDE WHICH MAY BE WHAT YOU'RE LOOKING FOR BY YOU AREN'T GOING TO GET FROM ME BUT MAYBE GIVES A SENSE OF HOW WE ARE THINKING ABOUT IT.
00:39:36	>>	TO FOLLOW-UP ON THE POLICING ISSUES, HOW THE ISSUES ARE BOTH CRIMINAL AND MILITIA, DO YOU HAVE A LEGISLATIVE PIECE OR STRATEGY AND SO, WHAT WOULD YOU SUGGEST TO THE NEXT ADMINISTRATION HOW TO PROCEED --
00:39:53	>>	BACK IN THE EARLY DAYS WHEN I WAS IN THE CRIMINAL DIVISION ONE OF MY RESPONSIBILITIES ACTUALLY WAS TO SUPERVISE CYBER PROSECUTIONS. WE HAVE LAWS IN THE BOOK THAT DEAL WITH THIS. THE BIGGEST CHALLENGE HAS BEEN, AS YOU KNOW, MANY OF THE ATTACKS AND CRIMINAL CASES ORIGINATED FROM OVERSEAS. AND THEREFORE, THE QUESTION IS NOT DO WE HAVE GOT LAWS, I THINK WE HAVE PRETTY GOOD LAWS, BUT TO OTHER COUNTRIES HAVE THE LAWS AND ARE THEY WILLING TO COOPERATE WITH US. THERE IS I BELIEVE THEY U.N. CYBERCRIME CONVENTION THAT WE HAVE ENCOURAGED PEOPLE TO SIGN UP TO. BUT IN THE END IT'S THE ABILITY OF OTHER COUNTRIES TO ENFORCE AND THEIR WILLINGNESS TO ENFORCE THAT MAKES A BIG DIFFERENCE. WE HAD AS AN ARRANGEMENT ONE OF THE SECOND PART OF JUSTICE THAT IT HAD 24-HOUR WATCHES WITH A NUMBER OF COUNTRIES SO IT COULD REACT QUICKLY IF THERE WAS AN ATTACK COMING. AND AS YOU CAN SEE, WITH THE SECRET SERVICE CASE I ANNOUNCED IN AUGUST WE CAN SUCCESSFULLY BRING CASES AGAINST PEOPLE, AND THIS WAS THE INTERNATIONAL CASE, AND GOT HELP FROM OTHER COUNTRIES. WHAT IS REALLY CHALLENGING OF COURSE IS WHEN YOU HAVE A FOREIGN COUNTRY THAT IS OPENLY FACILITATING OR TOLERATING THIS KIND OF ACTIVITY FOR ITS OWN REASONS AND THEN WE MOVE OUT OF THE DOMAIN OF CRIME AND INTO THE DOMAIN OF NATIONAL SECURITY.
00:41:20	>>	GOOD MORNING MR. SECRETARY. YOU HAVE SPOKEN QUITE A BIT ABOUT THE PUBLIC PRIVATE PARTNERSHIP AND THE WINTER NATURE AND ABILITY FOR PREDATORS TO OPT OUT IF THEY CHOOSE, AND OF COURSE THE HAVE TO DEAL WITH THE CONSEQUENCE OF THE DECISION. BUT WHAT ABOUT THE CASE WHERE THE ACTUAL TRUE CONSEQUENCES OF THE DECISION COULD NOT BE BORN AS MUCH BY THE ENTITY TO DECIDE TO OPT OUT OF OTHER FIRMS WHO ARE WORKING AND MORE IMPORTANTLY THE GENERAL PUBLIC?
00:41:46	>>	THAT IS -- THAT IS THE HARDEST ISSUE TO DEAL WITH. THE QUESTION OF INTERDEPENDENCY. AND WHAT DO YOU DO WHEN A FIRM IS IRRESPONSIBLE, PRIVATE FIRM, AND CONSEQUENCES THAT YOUR RESPONSIBILITY WILL BE VISIT ON OTHERS. WE SAW A LITTLE BIT OF THAT IN A Y2K. DURING MY TIME AS A JUDGE I HAD EITHER GOOD OR ILL FORTUNE OF HAVING TO DECIDE BIG INSURANCE COVERAGE CASES INVOLVING THE Y2K FAILURE, AND THE ISSUE THERE WAS IF YOU DIDN'T TAKE CARE OF THE Y2K PROBLEM IN YOUR COMPANY AND THERE WAS A CASCADING AFFECTING YOUR LIBEL. I THINK THAT THIS IS GOING TO HAVE TO BE BALANCED CAREFULLY AND SLOWLY FOR THE FOLLOWING REASON. ANY -- AND HERE I MIGHT DIFFER WITH THE SUGGESTIONS IN THIS COMMISSION REPORT -- I'VE OBSERVED THE PROCESS OF TRYING TO GET REGULATION IN THE AREA OF COMMUNICATIONS. YOU HAVE ALL SEEN IT, WHERE IT WAS FISA OR ANYTHING OF THAT SUPPORT. AND THE INTERNET, THE CULTURE OF THE INTERNET IS SO STRONGLY INDIVIDUALISTIC AND SO RESISTANT YOU HAVE THE GOVERNMENT GETTING IN THEIR SAYING YOU HAVE TO DO THIS, YOU HAVE TO LET US SIT IN ON THE SYSTEM. THAT I THINK ANYTHING THAT IS SMACKED TO THAT IN THE SLIGHTEST WOULD CAUSE A BACKLASH THAT WOULD MAKE SOME OF THE OTHER CONTROVERSIES WE HAVE SEEN LOOKED LIKE THEY WERE TEAPOTS. I THINK THERE IS AN APPROACH THAT'S LIKELY TO BE HELPFUL. AS WE MOVE ALONG AND DEVELOP THIS PARTNERSHIP I THINK WHAT WE WILL COME TO SEE IS THAT IF WE LAY OUT PERFORMANCE I'M NOT SAYING WE'RE GOING TO SIT HERE, BUT YOU HAVE GOT THE RESPONSIBILITY TO MAKE SURE THAT CERTAIN THINGS HAPPEN AND CERTAIN THINGS DON'T HAPPEN. THEN, WE CAN BE AND ENABLE WERE TO ALLOW PEOPLE AND HELP THEM TO MEET THOSE PERFORMANCE STANDARDS BUT WE ARE NOT ACTUALLY SAYING THAT WE ARE GOING TO SIT ON YOUR NETWORK OR YOUR SYSTEM OR WE WANT TO MICROMANAGE YOUR NETWORK OR SYSTEM. THE APPROACH OF PERFORMANCE OR OUTCOME BASE RULE STRIKES ME AS LIKELY TO BE MORE SUCCESSFUL IF THE COMMISSION, IF THERE IS A SUGGESTION BY REGULATION IS IN FACT ADOPTED I WOULD GO EITHER OUTCOME BASED OR PERFORMANCE BASED SYSTEM BECAUSE I THINK THAT IS LESS LIKELY TO GET RESISTANCE.
00:44:21	>>	MY NAME IS PLANNED, I WORK FOR TSA, WORK FOR YOU ESSENTIALLY. [LAUGHTER] YOU WERE TALKING ABOUT THE PROBLEMS WITH NATION STATES, MAYBE NOT AGREEING TO CERTAIN INITIATIVES. WOULD YOU SAY HE WOULD BE WILLING TO GIVE COUNTRIES AN ULTIMATUM SO IF YOU DON'T ABIDE BY CERTAIN THINGS, BY CERTAIN INITIATIVES WE WOULD BE WILLING TO HELP THEM OUT SUCH AS GOING INTO SEARING OR PAKISTAN.
00:44:54	>>	WELL, THIS HAS COME UP A LITTLE BIT IN THE SENSE OF ASKING THE QUESTION. WHEN IS A CYBERATTACK LIKE AN ACTIVE WAR? THIS HAS BEEN DISCUSSED IN THE QUESTION WITH ESTONIA. OF COURSE WITH GEORGIA IT WAS ACCOMPANIED BY THE MOVEMENT OF TROOPS, SO THAT'S AN EASIER ISSUE. THAT IS WHEN TO BE AN INTERESTING QUESTION FOR LAWYERS. I DO THINK THAT -- WHY DON'T WANT TO FEEL RISE OF THE HIT ON THIS ISSUE. I DO THINK AT THE RISK OF DOCKING WE DO HAVE TO HAVE A DOCTOR AND ABOUT THE POINT AT WHICH TWO THINGS BECOME NATIONAL SECURITY THREATS THAT CAN BE DEALT WITH AN INTERNATIONAL SECURITY WAY. ONE IS WHAT DO WE DO WHEN A COUNTRY, YOU KNOW, EXPLICITLY OR AT LEAST IMPLICITLY ENCOURAGES OR CONDONES A TAX? THAT'S TRUE IN THE PHYSICAL WORLD AND THAT'S TRUE IN THE VIRTUAL WORLD. THE SECOND IS WHAT YOU DO THAT COUNTRIES THAT ARE INCAPABLE CAN'T PREVENT ATTACKS, AND I THINK BOTH OF THESE PREVENT CHALLENGES FOR INTERNATIONAL LEGAL DOCTRINE. IT'S NOT SO MUCH THEIR REQUEST WHAT OUR CAPABILITIES ARE. IT'S A QUESTION OF WHICH SHOULD BE AUTHORIZED TO DO. THAT IS WAY TOO COMPLICATED FOR ME TO SCOUT OUT ON INVESTING BUT I DO THINK IT IS AN AREA WE HAVE TO TALK ABOUT.
00:46:23	>>	SECRETARY?
00:46:25	>>	I'M WITH FOX NEWS CHANNEL. TO PIGGYBACK ON THAT QUESTION, YOU HAD MENTIONED TO TAX AND SPEECH OF THE ESTONIA AND GEORGIA BOTH WITH RUSSIAN ORIGINS, BUT THERE WAS ONE MORE RECENT ONE WITH A POSSIBLE RUSSIAN ORIGINS ON THE DOD, AND I WANT TO KNOW WHAT HAS BEE GLEANED FROM THAT ATTACK LAST MONTH AND ALSO THAT SAYS ABOUT THE STATE OF CYBER SECURITY FOR GOVERNMENT AT LARGE?
00:46:46	>>	WELL, I'VE BEEN CAREFUL TO TALK ONLY ABOUT A TAX THAT OUR PUBLIC, I'M NOT GOING TO DISCUSS MATTERS THAT ARE NOT PUBLIC. I THINK WHAT I CAN SAY THOUGH IS THAT WE HAVE OVER THE PAST SEVERAL YEARS SEEN ALL KIND OF EFFORTS TO PENETRATE SYSTEMS WHETHER THEY ARE GOVERNMENT SYSTEMS OR PRIVATE SYSTEMS. SOME OF THEM ARE MORE SOPHISTICATED THAN OTHERS. AND I THINK THE INCREASING PACE OF THESE ATTACKS AND INCREASING APPRECIATION CONSEQUENCES OF THESE ATTACKS HAVE LED PEOPLE TO A FULLER WAY THAT HAS TO BE PLUGGED. TO BE CLEAR, I DON'T THINK ANYONE HAS ACCUSED THE RUSSIAN GOVERNMENT OF DOING THIS. I THINK THE INDICATION WAS PEOPLE WHO WERE SYMPATHETIC OR PERHAPS ANTIPATHETIC TO ESTONIA AND GEORGIA THAT WERE RESPONSIBLE.
00:47:59	>>	THIS WILL BE THE LAST QUESTION.
00:48:02	>>	MR. SECRETARY, I'M WITH THE PRIVATE SECTOR, AND THE REPORT MAKES ANOTHER RECOMMENDATION AND I WOULD LIKE TO GIVE YOUR VIEWS. THE RECOMMENDATION IS TO SUPPORT THEY GRADUALLY MORE PRECISELY INCORPORATE THE HOMELAND SECURITY COUNCIL INTO THE NATIONAL SECURITY COUNCIL AND CREATE DEPUTY TO THE NATIONAL SECURITY ADVISER. JUST WONDERING WHY YOUR PERSPECTIVES ARE OF SUCH A MOVE.
00:48:26	>>	I THINK HOW THE WHITE HOUSE ORGANIZES ITSELF IS TRULY AN ISSUE FOR THE NEXT PRESIDENT AND WHITE HOUSE. THEY HAVE GOT TO MAKE A JUDGMENT ABOUT WHAT THE STATUS FOR THE STATUE WILL BE A NATIONAL SECURITY ADVISER, WHETHER THERE SHOULD BE A PERSON TO IN HOMELAND SECURITY THINGS WHETHER IT IS A DEPUTY OR RANKING WHITE HOUSE AND ALL OF THAT IS OUT OF MY DOMAIN. GIVEN SOME OBSERVATIONS TO THE TRANSITION PEOPLE, WHICH I THINK I ALWAYS AM THE CONFIDENCE OF, SO I DON'T THINK I'M GOING TO COMMENT ON THIS, THE ONLY THING I WILL SAY IN PASSING AS I HAVE THE PRIVILEGE OF WORKING WITH TWO HOMELAND SECURITY ADVISERS, BOTH WHO ARE OUTSTANDING. BOTH ACTUALLY HAPPEN TO BE GOOD FRIENDS. THAT'S NOT WHY I'M SAYING THEIR OUTSTANDING. IT'S JUST A COINCIDENCE. AND BOTH ADDED REAL VALUE. NOW, WE HAVE MOVED -- WE ARE A MORE MATURE ORGANIZATION NOW, MUCH MORE MATURE. SO I THINK THE NEXT ADMINISTRATION WILL HAVE TO LOOK AND SEE IF THEY WANT TO INTEGRATE THESE TWO, THERE MAY BE OF VALUE TO THAT OR DO YOU FEEL THERE MIGHT BE AREAS OF HOMELAND SECURITY THAT PARTICULARLY IN THE DISASTER AREA THAT ARE SUFFICIENTLY KIND OF OUT OF THE CORE OF NATIONAL SECURITY THAT THERE WOULD BE SUBORDINATED. THAT IS A JUDGMENT CORE LARGELY BASED UPON HOW THE PEOPLE IN THE WHITE HOUSE WORK AND HOW THEY FEEL COMFORTABLE. WHAT WE DESERVE THE PRESIDENT THE BEST BECAUSE ULTIMATELY ALL OF THESE ADVISORY COUNCILS ARE THERE TO SERVE KNEADING THE PRESIDENT TO GET INFORMATION AND SERVED IN A CRISP AND EFFICIENT WAY.
00:50:11	>>	THANKS VERY MUCH. [APPLAUSE] SECRETARY CHERTOFF, THANK YOU FOR WHAT YOU DO, AND THANK YOU FOR BEING HERE AND SHARING WITH US TODAY. LADIES AND GENTLEMEN, WE ARE NOW GOING TO TAKE A BREAK BUT THIS IS NOT A WORK FOR A BREAK. WE WANT YOU TO GO OUT AND IN JULY AND INTERACT WITH THE EXHIBITS THAT ARE OUT IN THE AREA IN FRONT OF THE AMPHITHEATER. WE ARE GOING TO ASK YOU TO BE BACK SEEDED AND READY TO GO AT 10:00 AND WE WILL SECRETARY ENGLAND WILL BE HERE AND SPEAK STARTING AT 10:00 SO WE WILL LAST YEAR TO BE BACK IN YOUR SEATS READY TO GO FOR THAT. AGAIN, JUST A REMINDER THAT THE EXHIBITS ARE ONLY HERE TODAY. SO IT'S NOT SOMETHING YOU CAN PUT OFF ON YOUR SCHEDULE UNTIL TOMORROW, AND WE HAVE PROVIDED THIS HOUR BETWEEN THE TWO SPEAKERS SPECIFICALLY SO THAT YOU CAN DO THAT. AND YOU CAN HAVE SOME COFFEE AND SO FORTH AT THE SAME TIME. SO, THANKS FOR BEING HERE, THANKS FOR PARTICIPATING. WE WILL SEE YOU BACK HERE AT 10:00. [INAUDIBLE CONVERSATIONS] [INAUDIBLE CONVERSATIONS]

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