Jochen Werne - The Future of Digital Business Security

Good afternoon, ladies and gentlemen congregations to copy a coal, having a banker speaking last after three days conference. I mean, this is really ridiculous and a banker, which is not even so deep in what you experts are into cyber security, but I think maybe I have a couple of reflections to do. And behind me, there's the topic written. And I think I forgot a question, mark, the future of digital business security, you all spoke three days about exactly this topic, not only about digital business security, but about security, which is going even further. And what we saw on the last days was a lot of things about artificial intelligence, machine learning, blockchain and so on. This is the handles platform today. So Germany's wall street, John low. However we want to call it. And there's a title story from something which leaked a little bit, which should have been showed on the 3rd of December at the Bitcom the title.
And it's called free billion euros for artificial intelligence. This is the program from Germany, what they want to announce and what to bring till 2025 into the German market to get something, what they call artificial intelligence made in Germany. So if you are in the AI market here in Germany, or want to be inside, so there's a lot of budget to get for. I was on holidays a couple days ago. And when I was at the airport in Munich, they had, I said, okay, take a couple of magazines with me, normally sailing or something like that. But there were two titles, which I was really interested in having the first one was this year from the MIT technology review, probably you also read it. And there was a title story, which is called technology is threatening our democracy. There's not a question mark. If you see it, it is the point.
Technology is threatening. What they are speaking about is clearly electoral hacking and all these things. How do we save it? That's a question to you, to the auditorium here, what the MIT technology review makes. And we see it in all the Madeline, which we, which was discussed about Brexit, about drum elections and so on. And this is a topic what's about. There was a second magazine, which I was very interested in and it's completely different. It's from the scientific American it's called humans. Why we are unlike any other species on the planet. It's a special issue, the science of human being. And if you look both of these two things, and we normally forget that humans and technology are very close, connected, we created, we make it. And we are also the point of attack. And if you look at that slide here, maybe you showed it already.
The last days, I haven't seen it, the world of data breaches. And the interesting thing. When we look on a couple of these data breaches, these are the breaches recorded since 2013. And you see a country which is small, like the Netherlands, which is the number one victim of ransomware. You see a country also, not that big second, most identity theft, France, and what is very clear, most data record stone us. And there's a very small Phillip here on China, but the question is, do we have all the data here? So if I look at that, I always ask myself, how much is human made? How much is technology made? And I'm a member of the Chatham house, which is the international, the Royal Institute of international affairs in London. And we always asked this topics on a political level and it was on October seven.
That was the last time in the Chatham house. And these two gentlemen, one is the interview and the other one Islan Ford minister or house of parliament. And he was 50 times in North Korea. And in these 50 times in North Korea, he gave a wonderful speech on that topic. He never spoke about the topic, cyber threats. And now when we see a country like North Korea, which has not really the resources to make a lot of cyber threats, but we know that one cry virus, one cry attack is coming from North Korea. I asked him at the end and asked him, what do you think about cyber threats coming from countries like North Korea? And he said, yeah, we will see a lot of that in the future. But Johan, what you should not forget is always the cultural context of that. Because North Korea says it's legitimate to do things like cyber threats because also the USA is hacking our ICBM program.
And this is a very interesting point of view to see the different ways. And we should not forget when we speak about cyber war and cyber threats. That's the, the, the name cyber war is not that old. It comes from the seventies when we spoke before that, and this comes from before world war II, the question was always cyber information war. We spoke to you on that time about information war. Now, if you go away from hype topics like, or hype words, like cyber war, cyber attacks, cyber threats, and we go to the words, information war, we go back in history and come to a gentleman, which you probably know sun Sue was a general in the state of key, which is China today, hundreds of years before Christ. And he wrote a book it's called the art of war. And in his book, the art of war, he spoke about the use of spice.
And if you think about cyber attacks and getting information from someone else to use it for something it's like using spies. So it's not a no a new topic. What we are speaking about, it's a very, very old topic. And if you go further down the road, we go to, if you speak about the clouds of its and an hours who spoke Mave, who wrote about war, you always come to the same point. It's always about information and getting information. And what is this information good for for me now, we look at live in a information time and live in times, probably the most interesting times we ever had, why these are the three phenomena technology, society business. And if you look, look at that, we are living in times where we have exponential technologies, as you all know the problem, what I have speaking with our clients on a very personal matter, I'm from a bank I'm a banker in private banking or speaking also at the chat mouse or speaking on a C level with CEOs.
Normally I don't speak about the CTO, but I speak of CEOs. I have the problem that they don't understand that technology is moving much faster than the way we can think. And we are always biased. I said, I gonna write some time a book, which is called the devil called bias technology change is that fast social change. Meaning us is way slower business change because there's an organization slower. And if it comes to politics and politics is understanding the problem and taking measures against it, and you are not in, in a business, you have a problem. So this is a wonderful comic problem. You know, the, the slide we speak about two things, data security on this side and human error. On the other side, if they call it Dave, this is a comic or cartoon from 2006, has it changed up to now? I don't think so. And I wanted to speak a little bit about Dave, about what to do in your organization to create awareness and therefore, first thing you need awareness to, to be clear what happens because we all, if, if you think about the slide before the social change, so we adapt technology very fast, but without very often having awareness, what is behind what is behind us? If I look in the room, most of you, some of you are younger than me. Some the same age. You know what? This is.
It's not a today's. I CVM very good. It's Apollo 11, flying to the moon landing, putting something in an orbit landing on the moon, getting back. Great thing. This thing has the power computer power of 12,300 transistors. Perfect. You said a lot. Is that not much? I don't know. This is an iPhone seven here. You probably have that in yard pocket somewhere. It can also fly. Look. How many transistors do I have in that? From the same power, it cannot even fly. A lot of you grown up in, in Europe or in Germany also know something like the Eurovision song contest or something like that. When we grew up, we grew up at midnight. Television was over, there was a test photo coming. There was a national Anthem coming and then no more television from midnight to the next morning when we, when they wanted to make a, a connection between different countries, that was so complicated. And they, we noted from there was someone saying always, hello, Switzerland, are you there? Hello, Zurich. Hello, Vienna. Are you there today? If I want, I put my mobile phone here. So it's off. And I transmit what we are saying, what we are doing here in the whole world. And how much does it cost? Nothing because I'm in the wifi of copying a cold here. So it doesn't cost anything.
And we have to think about one thing. How was that possible? That was possible to, for, if you look at more law, about years and years of exponential growth of technology. And the point is we, this is technology, but we humans, we think linear. And if you speak, if you say that it's easy set, but you have to make examples to make it understandable to someone who is not in your business field. Otherwise you don't get the budget and you don't get the things done. If you make the possible, how do you explain exponential to someone who does not know anything about Matthias? I give you an example using a piece of paper. This is a fake paper paper. Think about this is a four paper. I dunno whose paper that is, but I steal it now. Okay. If I go and take this paper and every one of you, I think we are probably 60 people in the room here. Everyone has a piece of paper like that, and we all put this paper on top of each other. How thick is that? Please have me. How, how thick make it with your finger? This or you think little less. Okay. Okay. I have between that and that. Okay, fine. If you put these papers side by side, like that 60 papers, how many meters do we have?
2018. You said an anchor point was 20. Very good. Okay. Between 18 and 20 meters, not between one and 5,000 meters. Okay. Now, if we start and make that paper like that thick. Okay. Once and we go on twice, three times. I'm very sorry. Whose paper is that? I apologize. Three times four and try it at home. Okay. Please do it on your own five. And I probably get it six times done and seven, I never saw something. Okay. Six times now you're not bankers, so there's not a problem. How, how thick is that now? How many times
As, as
What?
As sick as 60?
Yeah. Okay. How many, how much is that? Make it together? Two after two double of two is 64 times thicker. Wonderful. Okay. 64 times thick. Alright. Okay. Next. This is a little bit of lesson here. How far is it here from Berlin to the moon in kilometers. So not for the Americans.
400,400,000.
We have 400,000 here. Very good. It's 384,000 from Munich. So from Berlin, probably 400,000. How often you need to fold that, that it's. If, if you could fold it on. Okay. The same way. How often would you need to fold it? To have the thickness that it goes from here to the moon 380,000 kilometers, 1 billion times, 100 billion times. What do you think? I put the anchor point by 1 billion. He says 40 there's someone who ever knows it or is exponential force 44, 42 times 42 times, ladies and gentlemen, for them who knew it, or have a great frame calculating in their head exponential. That's good. But can you believe that you have to fold this thing just 42 times to get 384,000 kilometers?
My mind doesn't work like that. Maybe someone of yours, but not mine. And normally science says no one is thinking like that. What we have here is the possibility, what we created through technology is enormous. And the, the founder of Airbnb made a fantastic example, how important that became. And you spoke a lot of mobile security during this conference, how important that became, but we forget it, how important it is. So I would make this example, what he said or what he made also with you, because it gives you a feeling how important it is due to the fact that he banker speaks. You probably have your phones with you so you can check the emails and so on. Would you take out your phone shortly? Just a mobile phone, if you have you okay. Very good. This, a cybersecurity conference it's clearly locked a mobile phone clear. So unlock it shortly. Okay. With the pin over something and you have something like that. And now please look to your right side or behind you and give your mobile phone to the next person. And it's not your wife or your husband who is sitting beside you. Huh?
The most important thing here for, for, for someone who speaks in front is staying quiet. Keep that thing. What, what you had now for a second in your stomach, given your private WhatsApp, your private photos to someone you don't know, this is exactly what happens. This is exactly how important this device became for you, for our clients, for our society. And this is not happened in 100 years. That happened in 10 years, in 10 years. What is the missing piece? What we have when we speak about, we have to know that we have to address that. And we have to know that exactly these people are working. Our companies might be the threat to our systems. So you have to educate them, but you cannot educate them in the same way.
And the good thing here we are an international auditorium here. So if I say someone, something to Mr Rahi and something to you, you probably would think differently coming from a different culture background. Peter Drucker said once the role of culture, culture eats strategy for breakfast. So when you make your, and your companies sensation of your workforce and you do it always the same way, ideally with a learn management system or something like that, you will fail. And this a book, and I don't get any credits for his book. It's from Elle. He write this wonderful book, the culture code, showing a little bit the differences and he calls it reptile brain, which we have inside of us. And he makes a one wonderful example. Is someone here from the us? Yeah, you are from the us. Fantastic. Someone traveled to the us in the last time. No one, no one wants to travel to your country. So very sorry. I dunno what happened, but okay. And when you've been in the us, have you, and you think about you go out in the evening, you want to eat some wonderful French cheese. Okay? Think about French cheese. You have something in mind, how that looks with a good BDO and this wonderful. You have something in your mind. If you say French cheese, does it look a little bit like that? Maybe
Confirmed. Yeah. Okay, fantastic. So when you go to the us, you find that in the us, when you go in the evening, no French cheese, no French cheese, no French cheese. Okay, good. We have a business model. Fantastic. If you don't have that, but you want it let's open the ger in the us. What happens if I open the ger like that in the us? Do I have success? No. Why not?
Pastor
Pasteurization, pastor pasteurization. You end up in jail. Even if it might be a good idea because you have to pasteurize cheese in the us. And this is the first big problem. The second thing is, so the cheese world is completely different. If I say to an American cheese and I say to a French guys, cheese, they both think two totally different things. This year is the Google search. By the way, I just put in French cheese and took the first four photos. So I said, what does an American think? When I say cheese? It's that it's Google, huh? It's not me.
And it's not attention, please. You have to, you have to be clear in your company. Culture is culture. It's not good. It's not bad, but you have to take it in consideration that people are different also from their culture background. And to health says to do these two things, there's a culture code alive, dead. So this is what he says. And if I, if I take a best practice example, weighs away from cyber security, taking in hand cash. What is the feeling of payments in payments at all in different cultures? Do you feel more secure in paying with cash or paying with mobile? And there's a study from I N G diva, which is a very, very interesting study. It's it wants to push us in, in direction, mobile payment, which will come, which is, will be ding. And they ask different comp different cultures.
Is that please indicate the level of security you believe you have been paying with or without cash. So in the UK, someone from the UK here, good, this is non-cash cash. More or less similar. There are no complete numbers. Therefore you have to look at the gap here. They feel equal cash, non cash, who cares us? Interesting enough Americans feel more safe with cash than with non cash. The same in Austria. And when we come to Germany, many, we see, we feel much more safe with cash than with non-cash and totally different in other countries where we have exactly the opposite in Belgium or the Netherlands. And this has something to do with the culture code, the culture code from German angst. For example, we have fear of losing control and exactly this we do also in our behavior sea level fraud and so on with our internet systems.
So coming to the end, this is an actual study coming from the UK, brought out by the Jees government, which is saying call to action. The cyber aware perception gap, which is asking for the people for thinking about exactly the gap, what they think, how safe they are and where they are really, this is the world in which we live. And if we completed with the past in 2002, psychologists received a, the novel prize for economics, for behavioral finance, and Canman was one of them. And he said, the illusion that we understand the past fosters overconfidence in our ability to predict the future. So be aware, be open minded. I think this is the most important thing which we have to do also in our topic, cyber security. And thank you very much.
Thank you.