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MONITORSECURITY INTELLIGENCE RESILIENCE STRATEGY
RELAUNCH
EDITION
Dear Reader,
Welcome to the first edition of the re-launched ’Monitor’ magazine and
the return by SIRS Consultancy Ltd to the publication of a regular journal
devoted to the widest possible range of security and resilience issues. We
hope that this, in addition to the larger projects on which the company is
currently working, will help to generate increased awareness of relevant
matters including security threats, terrorism and counter-terrorism,
intelligence, policing, geopolitics, current military issues, and also resilience
efforts to meet both malicious and non-malicious threats.
This first issue of the new ‘Monitor’ certainly aims to meet this
requirement, containing as it does articles focusing on a variety of areas.
These include European energy resilience, cyber security since the
emergence of Stuxnet, ongoing tensions between Japan and China, cyber
resilience planning and practice, the security of Heathrow Airport and how
local communities should aim to prepare for the impact of natural hazards,
such as flooding. Additionally, this edition of ‘Monitor’ features an in-depth
review of an excellent new book on cyber security, Cybersecurity and
Cyberwar: What Everyone Needs to Know, by P.W. Singer and Allan
Friedman.
The articles featured in ‘Monitor’ are all written by experts in relevant
fields, who come from a variety of professional backgrounds. ‘Monitor’
aims to appeal to both established specialists in the fields that the
magazine covers, and also to members of the wider public who may be
interested in the issues under scrutiny. In today’s uncertain world, we
believe that an awareness of security and resilience issues must spread
beyond those who already have significant work experience in relevant
fields.
Security and resilience matters of all types could potentially have an
impact on individuals throughout society, and it is with this in mind that
‘Monitor’ is being re-launched. We hope that you find ‘Monitor’ both
interesting and informative, and that you will continue to read the
magazine as it progresses and develops.
EDITORIAL
Images in this publication may be
under copyright.
Copyright © SIRS Consultancy Ltd.
No part of this publication may be
reproduced copied or transmitted in
any form or by any means stored in
any information storage or retrieval
systems without the publishers
express permission. Although every
effort is made to ensure the accuracy
and reliability of the material
published. SIRS Consultancy can
accept no responsibility.
Editor :
SIRS Consultancy Ltd.
info@sirsconsultancy.com
monitor@sirsconsultancy.org.uk
Company Website :
www.sirsconsultancy.com
Twitter :
@SIRSconsultancy
2
Thanks to our contributors :
John Palser
Luigi Castellani
Warren Dym
Marika N. Josephides
Stephen Blank
Dan Solomon
CONTENTS
HEATHROW : THE ETERNAL TARGET
BY : JOHN PALSER
RESILIENCE : BACK TO THE PAST
BY : LUIGI CASTELLANI
ENERGY RESILIENCE
RUSSIA, UKRAINE, AND THE PROSPECT OF ANOTHER GAS WAR
BY : WARREN DYM
BOOK REVIEW
CYBERSECURITY AND CYBERWAR: WHAT EVERYONE NEEDS TO KNOW
“WHAT DOESN’T KILL YOU”
CYBER RESILIENCE AND THREAT
BY : MARIKA N. JOSEPHIDES
JAPAN RESPONDS TO MULTIPLE SECURITY CHALLENGES
BY : STEPHEN BLANK
CYBER RESILIENCE : THE NEVER-ENDING STRUGGLE
BY : DAN SOLOMON
SIRS : AN INTRODUCTION
3
4
5
9
13
17
23
28
34
Images in this publication are not original to SIRS Consultancy Ltd.
SIRS Consultancy Ltd is a UK-based company, created in early 2011, which focuses primarily on the research
and analysis of current intelligence, security, geopolitical and resilience issues. Since its establishment, SIRS
has created and maintained a proven track record of providing accurate and timely insights concerning
current and emerging security matters. During its initial year of operation, SIRS was the first company to
create and publish as comprehensive report, titled ‘National Security Risks: Immediate Challenges Before
Summer 2012’, which focused on the whole range of security threats and resilience issues that Britain faced
prior to the 2012 Olympic and Paralympic Games. The Parliamentary launch of this major report, in
conjunction with cross-party political entities such as the All-Party Parliamentary Group on Specialist Security
and the House of Commons Home Affairs Committee, allowed SIRS to forge its initial links with the UK
political community, which still continue. Furthermore, several recommendations made in this report were
included on the British Army’s intranet as training material.
SIRS was able to further capitalise on the success of its first major project by producing ‘Summer 2012
Threats: The Final 10 Weeks’ in May 2012. This focused on and explored the security and threat picture faced
by Britain during the last two months before the 2012 Olympic Games, and served to provide an update and
expand upon the conclusions of ‘National Security Threats: Immediate Challenges Before Summer 2012’.
Furthermore, ‘Summer 2012 Threats: The Final 10 Weeks’ generated significant interest in SIRS as a
company, and resulted in SIRS staff being interviewed by mainstream media outlets including BBC News
Channel, Sky News, BBC Radio London, BBC Radio Five Live and ABC Radio Australia. SIRS’ increasing
relationship with media outlets has provided the company with significant and valuable experience in media
liaison, and in supplying the media with concise and relevant analyses of current security and intelligence
issues.
Aside from its larger projects, SIRS Consultancy personnel have also written or contributed to articles on
numerous relevant issues. These have included concerns as diverse as Islamist terrorism in the Maghreb and
Sahel regions of Africa, cyber security, emergency response communications, ‘lone wolf’ terrorism and also
the prospects for future peace and stability in Afghanistan. Furthermore, SIRS has also carried out extensive
research to support projects by external clients. These projects have focussed on matters including the threat
posed by al-Shabaab, piracy in the Indian Ocean, Mediterranean maritime security, and the size of the
European Union’s state and private sector intelligence communities. As a result of the range of different
projects that SIRS has worked on during the three years, the company’s personnel are highly flexible and
adaptable in their approach to their work, and are able to work alone or in groups on projects of any size.
Throughout 2012, SIRS Consultancy published the initial version of ‘Monitor’ magazine. As with the
re-launched ‘Monitor’, this magazine featured articles covering as diverse a range of relevant security and
intelligence matters as possible. Contributors to the original ‘Monitor’ came from a wide variety of
professional backgrounds including private sector security analysis, academia, the military and law enforce-
ment. ‘Monitor’s’ scope in terms of content was global, with individual sections examining security or
intelligence issues affecting particular countries, regions or continents, with other sections looking at more
universal matters such as the technology of security, physical security, and lessons that can be learned from
effective or ineffective responses to major incidents, such as terrorist attacks or ‘active shooter’ situations. Our
aim is for the re-launched ‘Monitor’ magazine to be just as broad, if not broader, in the scope of its outlook
and content.
The original ‘Monitor’ ended its run in October 2012. This was due to significant staff changes as SIRS
Consultancy, together with the emergence of new, large scale company projects which otherwise occupied
the majority of SIRS’ personnel. Also, SIRS staff have, since the end of ‘Monitor’s’ original run, been working
on their own independent projects concerning current security and intelligence issues, and furthermore have
used the interim period to undergo relevant training in areas such as advanced intelligence analysis, source
evaluation and the use of open-source research tools. These new skills will allow SIRS Consultancy’s staff to
widen their professional remit and improve the level of service that the company can provide to clients. SIRS
as a company is therefore more capable than ever.
SIRS : AN INTRODUCTION
4
Heathrow:
The EternalTarget
BY John Palser
As a modern transport hub, London Heathrow Airport
is vital to the United Kingdom's (UK) economy and the
country’s reputation around the world. The airport’s
metrics provide a clear run-down of its significance: “total
size of 1,227 hectares, two main runways, over 76,000
staff, 1,305 air movements daily, 86 airlines and 183 desti-
nations served in 90 countries and average daily passen-
ger numbers (both arriving and departing) of 190,100”
(Heathrow Airport: Facts and Figures). With such expan-
sive operations and passenger capacity, maintaining the
airport's security is of paramount importance. But just
what standards are currently being employed? More
importantly, are they of a nature sufficient to counter the
continuing terrorist threat to the UK?
The scars of the 11 September 2001 terrorist attacks
againsttheUnitedStates(US)(9/11)continuetorundeep
within the international commercial aviation sector. Much
of the current capacity for operational judgement and
planning is a direct result of that day and, mercifully, a
duplicate attack has not yet materialised. However, while
many airports around the world were forced to re-exam-
ine their security arrangements and admit their porosity,
Heathrow was a facility acutely aware of terrorism. Admi-
rable preventative measures, gained from experience,
were being taken prior to 9/11. London has always repre-
sented a fertile breeding ground for terrorist and extrem-
ist groups holding both domestic and international agen-
das. As part of the critical national infrastructure with
significant international links, Heathrow is the very defini-
tion of a prime target.
A SUCCESSFUL ATTACK ON HEATHROW WOULD DAMAGE THE
UK'S INTERNATIONAL REPUTATION. (IMAGE © JOHN PALSER)
Plots involving the airport prior to 9/11 were directed
both at the UK and against ‘proxy’ targets of foreign
powers, such as national airlines. One such case occurred
on 17 April 1986 when a Syrian intelligence official, Nezar
Hindawi,coercedhisfiancéintoboardinganEl-Alflightto
Israel. At the gate “a vigilant security officer noticed that
a supposedly empty bag was unexpectedly heavy,
despite having been x-rayed. When stripped down, a
blue plastic package was discovered containing an
orange substance resembling Semtex. The passenger
had passed through Heathrow security before being
allowed to enter the transit lounge. However, El-Al ran
their own security and was not content to depend on
anyone else. The bomb was discovered and the lives of
374 people were ultimately saved” (Gurney 1993, 178).
However, it is not only threats from within the airport that
Heathrow security has had to contend with. In 1994,
three attacks on Heathrow were orchestrated by the Irish
Republican Army (IRA) from outside the perimeter fence.
On10March,“aNissancarwaspositionedinthecarpark
of the Excelsior Hotel opposite Heathrow Airport. Three
mortars were fired from its boot and landed close to the
northern runway. Just after midnight on 11 March, the
IRA struck again, sending four mortar shells toward the
southern runway. A third attack on the morning of 13
March made a mockery of security, a timing device
enabling the terrorists to bury the third launcher days
before the attack” (Dillon 1994, 298).
The immediate effect of 9/11 was a significant augmenta-
tionofsecurityregardlessofcost.Thiswenthand-in-hand
with the consideration of who held ultimate responsibility
for such measures? Should Heathrow Airport, the UK
Governmentandthesecurityservicesformacollectiveor
should the airlines be expected to bear the financial
burden? A prime example of this was the case of the
UK-based Smiths Group, “which saw annual revenue
from its detection gear rise after 9/11 from about £130m
to £574m – an indication of the costs that have been
passed on to passengers.
Aviation security is a matter of national security and state
security. Businesses don't pay for police on the streets.
5
Heathrow:The EternalTarget
BYjohn palser
Yet for some reason aviation is singled out to pay for
security against threats that have nothing to do with
aviation but more to do with powerful geopolitical
forces” (‘The Guardian’, 7 September 2011). However,
aside from a surge in investment for additional security
equipment for screening passengers and luggage, and
restrictions on certain items such as penknives and
scissors,therewasnoreal‘overhaul’ofHeathrow’ssecuri-
ty. Compared to the endemically lax security within major
US airports, particularly the likes of Logan, Dulles and
Newark from where the 9/11 flights had originated,
Heathrow’s existing operations were admirable. The
Metropolitan Police continued to provide security both in
the terminals and on the perimeter roads, the British
Airports Authority (BAA) and the Department for Trans-
port worked to ensure high standards of border control
and, as a result, passengers were able to undertake their
journeys with minimal delay. It would be subsequent UK
plots which would impact Heathrow’s security provisions
much more indelibly.
The parameters put in place after 9/11 were in no way a
cure-all. Rather, they provoked a mutation in terrorist
thinking and a re-imagining of tactical approach. An
immediate example was the threat of a plane being shot
down on take-off. Disaster was narrowly avoided when a
missile attack on an Israeli airliner over Mombasa in 2002
came to naught. By 2005, Heathrow was in the cross
hairs. British police “arrested Kazi Rahman. Undercover
police and MI5 officers had negotiated with him for three
months as he upped the stakes and offered more cash.
His wish list included Man Portable Air Defence Systems
(MANPADS), a shoulder launched surface-to-air missile.
Several years earlier in 2003, police had discovered what
seemed to be early plans to use such weapons around
Heathrow’s perimeter fence. It looked like someone had
flattened the ground in preparation for bringing them in.
Heathrow’s dedicated patrols were stepped up, random-
ly checking places on the perimeters from which planes
could be shot down” (Hayman 2009, 340).
By far the most significant impact on Heathrow’s security
came in 2006. In a case almost beyond imagining, “more
than 4,000 people could have been killed if bombers had
succeededinblowinguptenflightsfromtheUKtoAmer-
ica – a death toll worse than 11 September 2001. Deputy
Commissioner of the Metropolitan Police, Paul Stephen-
son, said ‘We are confident we have disrupted a plan by
terrorists to cause untold death and destruction.
Put simply, this was intended to be mass murder on an
unimaginable scale’.
Hand baggage has now been banned from all UK
airports. No liquid was allowed to be carried on board
and passengers who did manage to fly were given clear
plastic bags for their travel documents and wallets. It is
thought the gang were plotted to conceal liquid explo-
sives inside drink bottles and trigger the device with the
flash from a disposable camera” (Metro, Article 1, 11
August 2006). This plot directly impinged on the travel-
ling public's freedoms and on Heathrow’s procedures for
monitoring individuals and their belongings. Even though
the plot was a failure, the fallout was still significant in
terms of general disruption. In monetary terms for exam-
ple, “British Airways shares fell five per cent, wiping £200
million off the company’s value. Accountants Grant
Thornton said the disruption could cost the whole econo-
my at least £3.2 million for every hour of delay through
lost productivity. An average three hour delay could lose
Britain £10 million a day” (‘Metro’, Article 2, 11 August
2006). But fail it did and if one thing was aptly demon-
strated, it was the importance of Heathrow’s on site secu-
rity being supported by the covert actions of the police
and security services in foiling potential attacks.
THE POLICE AND SECURITY SERVICES HAVE MANAGED TO
PREVENT A NUMBER OF PLANNED ATTACKS.
(IMAGE © JOHN PALSER)
6
Heathrow:The EternalTarget
BYjohn palser
Had the plot succeeded, the levels of international
criticism which would have been levelled at the UK can
only be imagined. Conversely, public confidence in flying
from Heathrow would also have been irreparably
damaged.
More than 9/11, the liquid bomb plot has continued to
shape Heathrow’s security capability and significant
technologicaladditions.Withintheairport,aprimeexam-
ple is “the Aurora Facial Imaging Recognition system, the
most advanced to be used in a UK airport and approved
for use at Heathrow following an 18-month trial by BAA
and the UK Border Agency” (‘Evening Standard’, 20 July
2011). Externally, “Cambridge UK design house Plextek
has had its advanced Blighter radar technology adopted
by BAA to enhance perimeter security. The complete
airport perimeter surveillance solution includes
long-range day and night cameras and a network of high
definition cameras, capable of quickly identifying and
tracking intruders detected by the Blighter radar” (‘Busi-
ness Weekly’, 30 May 2012). With regards to Heathrow
Airport’s overall security strategy, most of the required
key aspects of security are fulfilled: Passport control and
passenger screening prior to entering the departure area
are highly stringent; the presence of both armed and
unarmed police is a reassurance to passengers as much
as it is a deterrent to would be terrorists; the security
equipment currently in use is of leading quality and a
result of significant investment; and perimeter security is
able to identify potential launch sites for missile attacks.
Indeed, not since the three-day debacle of IRA bombard-
ments in 1994 has a successful attack been perpetrated
at Heathrow. However, that is not to say that terrorism
has been nullified as a danger.
There continues to be an assumption that a terrorist’s
main aim is to get on board a flight and then launch an
attack. However, there is very little to stop a suicide
bomberfromdetonatingadeviceanywhereintheairport
prior to being searched at passport control. Within a
group like Al-Qaeda’s modus operandi, this would fit
perfectly with their stated aims (no-warning attack, killing
innocent civilians, hitting an infrastructure target).
This concept is not an alien one either, as was demon-
strated in 2011 when “a Chechen militant detonated
explosives in the international arrivals hall at Domodedo-
vo Airport, 26 miles from Moscow city centre. 35 people
died,includingatleast8foreignersand180wereinjured”
(‘Metro’, 25 January 2011).
This attack made front page news around the world, with
strong coverage assured by the choice of target and the
fact that civilians of many nationalities lost their lives. With
Heathrow’s status as one of the busiest airports in the
world, a carbon-copy attack would produce exactly the
same result. Even the armed police presence would not
guard against this sort of attack. This links into the idea of
pre-emptive intelligence, with plots being shut down well
beforethezerohour.However,thereisagaintheassump-
tion that an attack on Heathrow will always be attempted
by the sort of terrorist cells involved in the 2006 plot. In
fact,itwouldseemthattherewouldbemoretofearfrom
a ‘lone wolf’ attack on a target such as Heathrow. This
leads into a major issue lacking from Heathrow’s security:
profiling.
The use of profiling, whether on the streets to reduce
crime or in an airport to prevent terrorism, is a concept
that is mired in controversy. Some minorities see it as a
form of stereotyping. Others see it simply as an anathe-
ma to the idea of civil liberties and of the individual being
innocent until proven guilty. However, when used in the
right way, profiling could represent a positive addition to
the security apparatus at Heathrow. Terrorists may be
able to use ingenuity to design devices that are easier to
conceal and smuggle onto planes but they cannot mask
basic human behaviour with guile. The Israeli national
carrierEl-Alisaperfectexample.Theiruseofprofilinghas
been a major success in countering terrorism. Some have
criticised the fact that “its screening process is so
time-consuming that passengers are required to arrive
three hours before all flights and that passengers can be
interrogated separately by three different screeners”
(‘ABC News’, 1 October 2001), but one look at the
airline's safety record demonstrates that it is largely a
precision tool. With this in mind, it is heartening to see
that future improvements in technology at Heathrow will
include an element of profiling: “a three-channel passen-
ger screening system will categorise people according to
risk,thenseparatetheminto'enhanced','normal'andthe
least risky, 'known traveller'. The new technology would
rapidly screen passengers, depending on the channel
theygothrough,tocoveradvancedX-ray,shoescanning,
full-body screening, liquid detection and electronic
sniffing for traces of explosives”
(‘Daily Mail’, 5 September 2011).
7
Heathrow:The EternalTarget
BYjohn palser
Another issue with Heathrow’s security is the lack of
support from the major airlines. Indeed, who is ultimately
accountable for the security of passengers? As the
providers of airport facilities, should it be Heathrow? Or
should it be up to the airlines, the companies who
ultimatelytransportthepublic,toactastheguarantorsof
safety? In many instances where pressure has been put
on airlines to cooperate more closely with airport authori-
ties or where technological improvements have been
offered, the results have been less that positive. Prior to
9/11, when toughened baggage containers were being
discussed, the response was decidedly negative: “Virgin
Atlantic said: ‘we feel that first and foremost our and
airport’s resources should be focused on preventing
suspectpackagesbeingtakenonboardinthefirstplace’.
Philip Baum, editor of Aviation Security magazine, said:
‘One hundred per cent screening of baggage does not
mean one hundred percent of devices are detected. You
are relying on human beings who are operating equip-
ment’” (‘The Times’, 9 January 2001). The same was true
whenthefeasibilityofmissilecounter-measuresonplanes
wasdiscussed:“Regardingonboardanti-missilesystems,
a British Airways source said: ‘We would never say never
to this type of equipment but our view at the moment is
thatitbelongsintherealmofhighlysophisticatedmilitary
planes’. BA would have to spend half its £1.4 billion cash
reserves to install the devices. A Department for Trans-
port source said:”‘While feasible, the system would be
expensive and would not protect against all types of
missiles. The best protection is good intelligence and
security around an airport perimeter”
(‘The Times’, 29 November 2002).
On the positive side, these examples demonstrate just
why Heathrow has had to maintain its security: because
of appalling pressure and a constant arbitration of
responsibility by the airlines for passenger safety. The
case needs to be stated more clearly that airlines have a
duty of care to their customers. Ultimately, despite the
utmost vigilance and best efforts of Heathrow officials,
the airline is the last point of defence in stopping a plot
from succeeding.
In conclusion, the security measures in existence at
Heathrow have been sufficient up to this point. Despite
the post-9/11 upsurge in international terrorism, neither
Heathrow nor the flights using it have been successfully
attacked. However, terrorists are continually seeking to
circumvent new security procedures. Heathrow cannot
afford to stagnate and must be vigilant to new threats
and parallel counter-measures, particularly in light of
asymmetric warfare's continuing focus on the apparatus
of civil aviation.
HEATHROW IS A KEY COMPONENT OF THE UK'S CRITICAL
NATIONAL INFRASTRUCTURE. (IMAGE © JOHN PALSER)
8
Resilience can be viewed as an effort to develop
protective measures which confront and reduce the
that can impact on and disrupt everyday life.
Resilience is a very ancient concept and can be found in
Greek myths. It is also linked to psychoanalysis in connec-
tion with the term ‘defence’, which is now defined as
‘active adaptability’ between risks and protective factors.
In reality it is the lifestyle adopted by the farmers, shep-
herds and woodcutters of previous generations when
faced with natural hazards, unaware that it was what we
would today refer to as resilience.
But how can we move from the concept of Civil Protec-
tionandDefencetothatofactivelyadaptingtoprevailing
environmental conditions that make resilience prepara-
tion a necessity? The outlook and perceptions of Italy’s
Civil Protection planners do not help. In Italy only limited
resources are allocated to preventative measures, where-
as significant support is given to emergency response
preparations.
There are several factors that contribute to this situation.
However, significant among these may be the fact that
the Italian media often reports on emergencies with
regard to the level of funding that has been allocated by
local, regional or national politicians in order to mitigate
the effects of the situation in question. It is likely that this,
rather than the quiet and constant work of prevention
thatnoonewillnoticeorappreciate,evenwhenthelatter
proves successful, will bring the politician(s) in question
more votes during subsequent elections.
So the crux of the matter is the perception both of the
risk and actions designed to prevent and mitigate it. This
iswhythereisaneednotonlyforanewpolitics,butespe-
cially a new awareness by citizens of their ‘habitat’, and
the environmental risks that it faces. If we contemplate
the seismic risk, in Italy only six percent of citizens live in
homes that are adequately constructed.
What about the others? They are often unaware of the
risktotheirhome,buttheworstisthattheyfirmlybelieve
that if an earthquake destroys their house, the Govern-
ment will provide financial support for its reconstruction.
It is essential to move away from relying too heavily on
local government for the implementation of resilience
measures. We have returned to the point at issue, namely
that Civil Protection invests almost entirely in preparing
for times of crisis in order to contain the effects of an
incident or situation, instead of considering the environ-
ment as the frame within which we must learn to live.
In a country like Italy, where the risk of seismic events is
widespread, there is a need to work day-by-day to limit
the effects of any significant seismic event, just as the
farmer takes care of their land to avoid spending more
assets in order to recover from any damage that it might
suffer. In effect, the economic resources invested for
emergencyandreactivationeffortsaresignificantlygreat-
er than those necessary to adapt to prevailing environ-
mental risks and issues.
Resilience :BacktothePast
BY Luigi Castellani
TESSINO TORRENT IN SPOLETO, UMBRIA
(IMAGE © LUIGI CASTELLANI)
TESSINO TORRENT IN SPOLETO, UMBRIA
(IMAGE © LUIGI CASTELLANI)
9
This is as true of preparations designed to mitigate the
effects of flooding, as it is of measures which aim to limit
the damage caused by seismic events.
The territory in which we currently live is not ‘natural’, but
formed by at least 35 centuries of steady human activity.
Thisworkoffarmers,shepherdsandwoodcuttersstarted
to disappear during the post-Second World War period.
With it went the ‘know-how’, the historical memories and
knowledge of how to adapt to environmental factors,
which would previously have been handed on to future
generations.
At the same time city planning, an effort unworthy of this
name, has only tried to appease the hunger for ‘modern’
houses, industrial areas and appropriate infrastructures
forpopulationgrowthbybuildingnewcitieswhichdonot
consider the integrity of the surrounding environment.
During periods of rapid economic growth the safety of
new towns was not taken into account. Also, the fact that
the safety of these towns was dependent upon the care
and maintenance of the surrounding land was not consid-
ered. Without adequate flood prevention works, retain-
ing structures and walls to channel rain water, together
with a lack of ongoing forestry operations, neglected hills
and mountains have started to subside and collapse.
Furthermore,thereareriverbedsunabletocontainfloods
and debris.
We need to return to a direct and widespread manage-
ment of vulnerable territory by all citizens, not only by
farmers and woodcutters. In order to prevent flooding
and maintain the integrity of land in at-risk areas, the
same level of care needs to be taken as during historical
periods of more widespread and intensive agricultural
maintenance.
Historically, ploughing was one of the hardest rural tasks.
As a result of ploughing, the land dried by the summer
sun was deeply turned over. This was fundamental to
renew the land cycle, and was repeated at different times
of the year. Moreover, additional grooves were dug to
ensure the flow of rain water into canals and to prevent
the destruction of crops and damage to agricultural land
through flooding.
This is the concept of being an ‘active citizen’, working
day-by-day to adjust to any hazards posed by the local
environment, perceiving risks and learning to adapt; not
through practical efforts, but instead by being an active
observer, with a conscience sufficient to consider the
security and common good of the local community.
If we consider the operational role of local communities,
there is the need to reorganise the function of the agen-
cies that support Civil Protection efforts (fire brigades,
police forces, local authorities, emergency services, etc)
closer to planning, situation control, the research and
assessment of risk scenarios and especially to the dissem-
ination of advice and guidance. However Civil Protection
would have the basic role of coordinating rescues and
resolving the relevant situation. Civil Protection would
also have the task of issuing weather warnings and
reports and inspecting improvements made to private
properties as part of wider resilience efforts. This latter
role could entail the issuing of certificates confirming that
improvements to private properties are of a sufficient
standard.
Resilience: BacktothePast
BYLuigiCastellani
TESSINO TORRENT IN SPOLETO, UMBRIA
(IMAGE © LUIGI CASTELLANI)
10
Returning to the concept of territorial protection and
resilience, how can we implement this idea in urban
centres? Firstly, every citizen should directly supervise
public works and infrastructure projects and secondly
they should work to make their own home safe. The
public could be persuaded to be active citizens through
subsidies, tax breaks on real estate with an acceptable
and certified level of safety and the related economic and
commercial revaluation of the property, etc.
So we can start talking about urban regeneration as
resilience. This approach can be followed by bestowing
funds and benefits to instill the concept that resources
should be directed to ongoing efforts to ensure the
safety of the citizens and not purely to the emergency
response efforts.
Since the first subject of sustainable urban regeneration
must be the citizen, a civil and educational revolution
would be needed to spread awareness of resilience and
the importance of property, especially with regard to
relatedtaxes.Therefore,thecitizenmustknowthatbuild-
ings aren't everlasting and that the quality and safety of
public spaces is a right.
Clearly the use of official funds and / or benefits to
strengthen private homes in order to increase the safety
of properties to a sufficient standard, would involve
assessments by technicians, engineers and local authori-
ties in order to grant planning permission and ascertain if
the planned work has met a minimum standard.
This is the concept of being an ‘active citizen’, working
day-by-day to adjust to any hazards posed by the local
environment, perceiving risks and learning to adapt; not
through practical efforts, but instead by being an active
observer, with a conscience sufficient to consider the
security and common good of the local community.
If we consider the operational role of local communities,
there is the need to reorganise the function of the agen-
cies that support Civil Protection efforts (fire brigades,
police forces, local authorities, emergency services, etc)
closer to planning, situation control, the research and
assessment of risk scenarios and especially to the dissem-
ination of advice and guidance. However Civil Protection
would have the basic role of coordinating rescues and
resolving the relevant situation. Civil Protection would
also have the task of issuing weather warnings and
reports and inspecting improvements made to private
properties as part of wider resilience efforts. This latter
role could entail the issuing of certificates confirming that
improvements to private properties are of a sufficient
standard.
The essential task of the citizen is to be aware and ensure
their own safety, which will lead to an increased level of
local resilience. Obviously, the awareness of being an
active citizen has a meaning as long as we talk in terms of
natural hazards.
Itisquitedifferentifwetalkaboutindustrialriskinperiph-
eral metropolitan areas or in strongly industrialised areas.
In this case, Italian law already allows citizens to partici-
pate in the initial planning of new buildings, whatever
their end use is (infrastructures, residential districts,
high-risk areas), and outline potential health and environ-
mental concerns.
In October 2013 the XXVIII Congress of the National
Institute of Urban Planning took place in Salerno. One of
the main areas covered by the Congress was the ‘Ri.U.-
So.’(RigenerazioneUrbanaSostenibile)project,whichwill
focus on urban regeneration as a form of resilience.
Resilience: BacktothePast
BYLuigiCastellani
FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI)
11
This Plan for Sustainable Urban Regeneration – which
follows the example of the National Energy Plan, and
which sets objectives and outlines the relevant political,
regulatory and financial instruments, has the following
aims :
private buildings, reminding the Italian population that
there are about 24 million people living in earth-
quake-prone areas and about six million people in areas
at risk of flooding;
the issuing of certificates confirming that they have
reached a minimum standard of construction and / or
reinforcement in order to meet resilience challenges .
To do this, the synergy between politics, technicians,
businessandfinanceisn’tenoughbut,asreiterated,there
is a need for citizens to be aware of their local resilience
needs and duties.
The basic theory is that the future of our cities depends
upon our ability, including as individuals, to facilitate their
adjustment to the great current transformations. These
include climate change, environmental, economic and
social crises and also a finite amount of urban space. The
citizen must understand that they are primarily responsi-
ble for their own security because without individual
resilience there cannot be a collective resilience.
Resilience: BacktothePast
BYLuigiCastellani
FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI)
FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI)
12
Thestand-offendedon20Januarywhen,aftermediation
by the EU, Gazprom and Naftogaz signed a new
purchase agreement, and gas flowed through Ukraine
once again. But such a crisis may happen again.
On 21 November, 2013, Ukrainian President Viktor
Yanukovych, under pressure from Russian President
Vladimir Putin, decided against signing a free-trade
agreement with the EU. Putin had pressured Yanukovych
in part by threatening higher gas prices and limited
supplies. The Ukrainian people took to the streets in
numbers not seen since the Orange Revolution of 2004,
amajorprotestagainsttheelectionofViktorYanukovych.
The gas stoppage of 2009 should serve as a stark
reminder of what Russia is capable of, and suggest
policies and practices to help mitigate the effects of
another potential gas stoppage.
On 1 January 2009 the Russian state gas company,
withdrawing20%oftheEuropeanUnion’s(EU)supply.
Gazprom was embroiled in a pricing dispute with
Naftogaz of Ukraine, which provides the largest gas
transit route to the Balkans, Central Europe, and West-
ern Europe.
80% of Russian gas exports to the EU passed through
Ukraine at the time of the January 2009 disruption. By 2
January,Bulgaria,Hungary,Poland,RomaniaandSlovakia
had already experienced shortages. By 7 January all
Russian gas exports to the EU had stopped. Nations
scrambled to enact emergency plans as temperatures
dropped. The hardest hit region was South-Eastern
Europe, where gas dependency on Gazprom could
amount to 100%, and where the global economic down-
turn had undermined an already vulnerable energy
sector. Some 700,000 apartments in Sarajevo, for exam-
ple, lost heating, as suburban consumers turned to alter-
native fuels like wood, or found refuge with relatives and
friends elsewhere.
In Bulgaria, Greece, Moldova, Serbia and other regional
nations,storedgas,fueloil,hydroelectricpower,liquefied
natural gas (LNG), or emergency help from across
borders all lessened the severity of the shortfall from
Russia.
Critical factors included water level and tempera-
ture—that it remained above freezing helped to avoid a
humanitarian disaster, and freed water for for hydroelec-
tric power—availability and cost of wood for household
heating, availability and cost of fuel oil for utilities that
could switch from gas, transport infrastructure for the
distributionoffueloil,reverseflowcapabilityfortheredis-
tribution of gas supplies and energy agreements with
neighbouringcountries. Meanwhile, Central andWestern
European nations like Belgium, Germany and Italy, which
have more diverse natural gas supplies, including LNG
terminals, substantial domestic gas production and
storage, and better overall energy resilience, adjusted
easily to the Ukraine incident.
EnergyResilience:
Russia,Ukraine, and theProspect ofanother GasWar
BY WARREN DYM
A Continuing Threat
It is important to stress that Europe is not on the whole
dependent on Russian gas. Two nations—Germany and
Italy—together account for about 50% of the EU’s
dependency.
Europe has achieved remarkable energy diversification
since the 1980s. The share of Russian gas imports within
the EU’s overall gas consumption has declined from 30%
in the early 1990s to 25% today, although the share of
European imports more broadly (including non-EU
nations) is higher. Advanced economies like Germany
procure natural gas from Algeria, Nigeria, Norway and
the Middle East, and can expect LNG from the United
States in the near future, and possibly domestic produc-
tion from shale. The share of total energy that imported
gas provides (alongside domestic gas, coal, nuclear,
hydropower, and renewables) may be relatively small for
these countries, and may serve industry more than
households.
Nevertheless, Putin’s ability to use gas as a political
bargaining chip in Russia’s near-abroad has improved
since 2009. In December 2011, Gazprom acquired the
remaining stake in Belarus’s gas transport company,
Beltransgaz, which the Russian company did not already
own.
13
Russian companies had curtailed oil and gas supplies to
Belarus in 2010 and 2011 over contract and pricing
disputes. In 2010, Putin negotiated with Ukraine for an
extension of Russia’s naval presence at Sevastopol on the
Black Sea to 2042 by granting a ten-year discount on
natural gas.
Russia also offers cheap gas and debt relief to woo
UkraineintoacustomsunionthatprivilegesRussianinter-
ests, and eventually into a Eurasian economic union.
Moldova is facing a similar choice. Russia opposes EU
efforts toward energy market liberalisation and integra-
tion, including an Energy Community Treaty (ECT) for
non-EU South-Eastern states like Moldova and Serbia.
Russia’s counter-deal is familiar: renounce EU-oriented
market reforms and enjoy price cuts on gas, together
with debt relief. A Kremlin envoy explicitly mentioned the
prospect of gas cuts to Moldova, as Russia banned
Moldovan wine over supposed health concerns.
Other gas dependent nations pay strikingly high prices,
likeLithuania,whichformallycomplainedtotheEuropean
Commission. A formal investigation of Gazprom’s
dealings in Europe is now ongoing. In neighbouring
Latvia, Russian energy concerns so dominate the political
culture that one might speak of the ‘Gazpromization’ of
politics there. Part of Russia’s energy strategy involves
maintaining constructive relationships with rich European
countries. Long-term bilateral contracts undermine
efforts toward an integrated European energy market
and infrastructure, and weaken the bargaining power of
more dependent nations in Russia’s near-abroad.
Long-term energy security for France, Germany and Italy
makes them less vulnerable to insecurities elsewhere and
less interested in integration.
Gazprom recently consented to restructuring gas
contracts with select European customers to reflect the
spot price of gas, rather than fixed global oil prices, as
customary. This serves Gazprom’s richer customers and,
again, reduces the attractiveness for them of market
integration. The Baltic States and Poland have been
highly critical of these bilateral arrangements.
One might also recall the challenges facing economic
integration: Eurozone leader Germany, already facing
widespread opposition to austerity measures
EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
imposed on economically weaker members like Greece
and Spain, and enjoying relatively secure energy relations
with Russia, might avoid similarly tying its energy security
to the EU.
Russia’s pipelines to Europe themselves have strategic
significance. The Nord Stream line that began serving
Germany directly from Western Siberia under the Baltic
Sea in 2011 reduces the risk that Europe’s economic
heartland will be adversely affected by another crisis in
Russia’s near-abroad. This only makes using gas as a
bargaining chip there more attractive to Russia. The
Yamal-Europe pipeline that opened in the 1990s did not
secure Europe as reliably as Nord Stream does since
Yamal runs through Belarus, and pricing disputes flared
between Gazprom and Beltransgaz before the Russian
company completed its acquisition of the latter. Nord
Stream also deliberately bypasses the Exclusive
Economic Zones (EEZs) of Poland and the Baltic States,
leaving them more dependent on the Yamal line.
Poland is considering developing its domestic unconven-
tional resources in part for these reasons. Finally, Russia’s
proposed South Stream pipeline under the Black Sea
would bring Russian gas to Central Europe via Italy, but it
would cross Turkey’s EEZ, not Ukraine’s, thereby isolating
Russia’s near abroad once again.
RUSSIAN GAS PIPELINES TO THE WEST BYPASS EASTERN EUROPE.
THE NOW DEFUNCT NABUCCO WAS A WESTERN-BACKED
ALTERNATIVE. (IMAGE ©F. WILLIAM ENGDAHL)
14
EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
PERCENT OF MISSING GAS SUPPLY BETWEEN 6 TO 20 JANUARY, 2009. RED = 75%, ORANGE = 50-75%,
PINK = 25-50%, YELLOW = UNDER 25% (IMAGE ©EUROPA.EU)
(EU, ECT, INOGATE and the International Energy
Agency, or IEA) with richer countries, not to mention with
Russia.TheEUhasanumberofenergysecurityinitiatives,
including the Gas Security of Supply Directive and Gas
Coordination Group, and an Early Warning Mechanism
agreement with Russia. Energy resilience can therefore
vary markedly.
Responses to the January 2009 crisis, while they reveal
some common concerns, illustrate distinctive strengths
and challenges. For example, EU member Bulgaria had
no LNG import terminal and limited domestic gas
production. It imported almost all of its natural gas from
Gazprom, much of it via Ukraine. Experiencing supply
shortages as early as 2 January, the Bulgarian Govern-
ment ordered major industrial consumers, especially two
fertiliser companies, to close, as the national gas compa-
ny negotiated for additional supply from offshore fields
worked by a British company and increased imports from
Greece.
All export of alternative fuels, namely fuel oil, was
stopped, and a nuclear plant (closed to meet EU
mandates) was reopened. Substantial reserves were
withdrawn from the national underground gas storage
(UGS) facility at Chiren. Coal plants were put on line,
including one lignite plant that had also failed to meet EU
environmental standards and been closed.
The largest oil refinery at Burgas, which is owned—not
incidentally—by the Russian company, LukOil, possessed
substantial fuel oil for utility companies capable of
TheWestern-backedTrans-AnatolianPipeline(TANAP)to
bring Azeri gas toward Italy will compete with South
Stream. Some argue that Russia seeks to influence Azer-
baijan’s dealings with the West by offering attractive
energy contracts and arms deals.
Russian energy giants frequently own majority shares in
Eastern Europe’s energy infrastructure. Once again,
Gazprom acquired Beltransgaz of Belarus, including
storage units and transit lines, after years of dispute.
Ukraine’s struggle to retain independent control of its
energy sector is one factor behind its quarrels with
Gazprom. But turning to the Balkans, we find more over-
whelming Russian control.
Serbia’s ‘Security of Supply Statement’ of August, 2009,
did not so much as mention the stand-off with Ukraine
thatoccurredjustmonthspreviouslyandthathadamajor
impact on the Balkan nation. The statement merely cited
SouthStreamasSerbia’shedgeagainstenergyinsecurity.
Gazprom Neft runs Serbia’s oil industry and refineries,
which means that in the event of a low level of gas supply
from Gazprom, the sister company stands to win
additional fuel oil sales to utilities—an obvious conflict of
interest. Construction of South Stream recently began in
Serbia, although Belgrade claimed in 2009 that
“deliveries [were] to start in 2013.”
Emergency Planning
Eastern European nations possess unique energy
portfolios, infrastructures, geological and demographic
conditions, and membership or treaty obligations
15
EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
According to the Energy Act (and largely in line with IEA
membership prerequisites) all suppliers of energy within
thecountryarerequiredtomaintainasupplystandardfor
30 days in the event of major weather events or supply
disruptions.
Companiesareexpectedtodrawfromstorage,domestic
sources, or reach across borders. Slovakia’s national gas
supply company, Slovenský Plynárenský Priemysel (SPP),
which translates as ‘Slovak Gas Industry’, penned agree-
ments with E.ON Ruhrgas of Germany and GDF Suez of
France in order to diversify its import portfolio. Special
regional centres are charged with announcing energy
emergencies and managing the response. Transmission,
distributionandstoragecompaniesarerequiredtofollow
the centres’ directives. They include specific restrictions
or cut-offs to different end users according to severity
level ratings (i.e., household heating is a top priority).
Otherwise, Slovakia’s utilities did not have a widespread
ability to switch from gas to fuel oil, as in Bulgaria.
Today, Slovakia depends on Russia for 63% of its natural
gas, amounting to 20% of its overall energy portfolio, but
the energy resilience of this EU and IEA member is
relatively sound.
Policy Recommendations
Today, Slovakia depends on Russia for 63% of its natural
gas, amounting to 20% of its overall energy portfolio, but
the energy resilience of this EU and IEA member is
relatively sound.
The gas war between Russia and Ukraine in 2009 could
have been much worse. Temperatures could have plum-
metedfurther,thestoppagecouldhavebeenplannedfor
a non-holiday period (when demand would have been
higher), and it could have lasted longer than 19 days. All
European nations, but especially Eastern European ones
from the Baltic to the Balkans, should study the events of
2009 in order to develop better emergency plans. This
brief overview would suggest the following
policy recommendations:
(continued on next page)
switching from gas, but logistics and infrastructure prob-
lems prevented distribution across the country. So while
Russian gas accounts for 13.6% of Bulgaria’s total energy
consumption today, overall dependency on Russia is
much higher when one factors in oil. Bulgaria still lacks an
LNG terminal on the Black Sea coast, but it is boosting
domestic gas production and, like Serbia, expecting
Russia’s South Stream.
Similarly, Russian energy giants enjoy overwhelming
control over Serbia’s oil and gas industry and infrastruc-
ture. Here too limited stocks of fuel oil proved impossible
to distribute to utilities swiftly in January 2009, due to
infrastructure and logistics challenges. But unlike Bulgar-
ia, Serbia possesses no adequate domestic UGS.
Belgrade district added a new boiler to serve that critical
city, but the emergency import of 25,000 tons of fuel oil
from Bosnia proved more decisive. The Serbian Govern-
ment also arranged electricity imports from Hungary’s
Magyar Olaj (MOL) and Germany’s E.ON.
Such cross-border arrangements and additional reverse
flow capabilities will prove critical for Serbia looking
ahead and the national ‘Security of Supply Statement’
calls for a host of new interconnections. Otherwise, there
was no official discussion of overdependence on Russia
forgasandoilafterthecrisisin2009,andSerbia’sNation-
al Anti-Monopoly Commission claimed that the issue fell
beyond its mandate. The national (or rather, Russian) plan
for Serbia remains, like Bulgaria, to wait for the South
Stream pipeline.
Serbia’s relative complacency in energy security planning
after the 2009 crisis stands in marked contrast to the
Slovak Republic. In line with EU requirements toward
liberalisation Slovakia ‘unbundled’ its import, transmis-
sion, and distribution industries in 2006, so that one
company cannotcontrolenergyflows fromproductionto
end users. Nevertheless, natural gas accounted for 27%
of Slovakia’s total energy consumption in 2009, and the
bulk came from Russia in accordance with a 20-year
contract with Gazprom; and Slovakia was a transit nation
for some 20% of the EU’s total natural gas, much of it
from Ukraine. Therefore, after the crisis Slovakia invested
heavily in infrastructure to improve the movement of gas
from storage to consumers, and beefed up reverse flow
capability from the Czech Republic.
16
EnergyResilience :
Russia,Ukraine,andtheProspectofanotherGasWar
BYWARRENDYM
and distribution plan.
-
tion and distribution plan.
fuel oil, gasoil, or coal, depending on what is most
available.
to emissions restrictions.
nationsshouldinvestininterconnectionsandreverseflow
capabilities to improve the strategic movement of
supplies during emergencies.
energy security.
priority to vulnerable households are essential.
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
The truly comprehensive scope of this excellent book
with regard to current and emerging cyber security
issues, puts a complete breakdown of its contents
beyond the reach of this review.
This in itself demonstrates the extent to which this book
represents an in-depth attempt to understand as
completely as possible the present cyber threat picture,
and the measures which have been and could be utilised
to ensure cyber security. The wide-ranging approach
taken by the authors of this work allows them to discuss
cyber security issues from the perspective of states,
sub-state groups, the business community, and also how
these interact with each other in cyberspace. Aside from
the highly informative content of this book, and the
authors’ excellent use of evidence to support arguments
and introduce different perspectives, the book itself is
writteninawaythatengagesthereader,andmakeswhat
some may view as a ‘dry’ subject genuinely interesting.
The first main section of Cybersecurity and Cyberwar:
What Everyone Needs to Know, titled ‘How It All Works’,
itverywell-structuredandeasilyaccessible.Containingas
it does an explanation of how the Internet functions at a
basic level, this section provides all those who use the
Internet,butwhomaynotunderstanditsstructure,witha
solid introduction that is vital to comprehending much of
what follows later in the book. Highlights from this first
section are many and varied.
When explaining how the Internet operates, it puts
forward a simple yet concise and informative guide to
17
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
how its Domain Name System functions. This section also
introduces the reader to major issues such as Internet
governance, the authentication of individuals’ identity
online and, crucially, the main threats that exist in cyber-
space. The cyber security issues raised in this first section
of the book include Advanced Persistent Threats, which
are rapidly becoming a major concern within cyber
security circles. The Wikileaks ‘Cablegate’ case is also
well-covered with regard to the role that unauthorised
disclosures can play in undermining cyber, organisational
and national security. The book’s first section emphasises
that the human factor is often overlooked with regard to
cybersecurity.Thisapproachstrengthensthevalueofthe
book as a guide to cyber security as it recognises that
cyber security as a concept rests as much on individuals
as on the technology at their disposal.
The second section of the book, ‘Why It Matters’, contin-
ues the authors’ excellent use of examples to introduce
and explain the main issues surrounding cyber security.
For instance, Singer and Friedman highlight the fact that
different nation states have varying beliefs regarding
what constitutes cyber security, and the need for a free
flow of information via the Internet. The book points out
that whilst politicians in the United States argue that
access to international online news sources and social
networks is a human right, countries such as China and
Russia view the same free flow of information as an
attempt to undermine the stability of the state, rather
than a basic human right.
By using this simple but powerful example, Singer and
Friedman clearly demonstrate the inherent difficulty in
defining cyber security as a concept at the international
level, as different states can have conflicting beliefs
regarding exactly what constitutes a cyber threat. This
section of the book also tackles the vital issue of attribu-
tion with regard to cyber attacks and how hackers can
remotely take control of computers and then use these
machines to carry out cyber attacks.
Although the authors of this book often focus primarily
on technology, they never lose sight of how cyber securi-
ty concerns could damage relations between states, For
example, with regard to the issue of attribution,
Singer and Friedman argue that mutual suspicions
concerning cyber security have increasingly “poisoned”
US-Chinese relations. The authors then concede that,
since many in the US assume that the Chinese state has a
high level of control over its citizens, then it is logical to
argue that most “insidious activities” launched using
computers based in China were carried out with at least
some knowledge on the part of the Chinese
Government. However, it is then pointed out that this
viewpoint, especially prevalent in the US, may persuade
potentialhackerstoremotelycaptureandusecomputers
in China in order to avoid detection, although it is further
argued that this in itself may allow the Chinese
Government to attempt to deny any cyber attacks that it
hasitselfcarriedout. Thefactthatthisexampleisgivenin
a single paragraph demonstrates the ability of the
authors of this work to concisely analyse a given issue in
suchawaythatgivesthereaderagoodunderstandingof
what is at stake.
‘Why It Matters’ also contains a solid introduction to the
issue of ‘hacktivism’ as a concept, together with an over-
view of who carries it out and why. The section includes a
comprehensive yet concise analysis of ‘Anonymous’,
including how it emerged, its modus operandi and what
its motivations are. Whilst many assessments of hacktiv-
ism focus purely on its repercussions in cyberspace,
Singer and Friedman also explore how such activity can
lead to confrontation and potentially even fatalities in the
non-cyber world. The authors cite a 2011 US Army War
College report which recounts how Los Zetas, a drug
cartelcomposedofformerMexicanArmypersonnel,was
targeted by Anonymous after its kidnapping of one of
the latter’s members. Following a statement by Anony-
mous that it would post confidential information regard-
ing Los Zetas online if its member was not released, the
cartel hired experts to help it ‘reverse hack’ Anonymous,
uncover personal details of some of its members, and
threaten them with assassination.
In citing this example, the authors of this book are
addressing the potential real-world impact of hacktivism,
something not always done by writers on cyber security,
especially when examining interaction between sub-state
actors.
18
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
This middle section of Cybersecurity and Cyberwar:
What Everyone Needs to Know includes a straightfor-
ward yet informative introduction to the various types of
cybercrime, which is both clear and easily understand-
able. Even for those of us who consider ourselves to be
‘cyber-savvy’, such a guide to potential online crimes
should be and is most welcome. Cyber espionage is also
covered in this section, with the example of ‘Operation
Shady RAT’, which successfully penetrated 72 major
targets across the globe, being used to demonstrate
boththescaleofcyberespionageandtherangeofactors
that might be targeted.
Theauthorsofthebookalsoadoptamorebalancedview
of the potential threat posed by cyber terrorism than
some sections of the media. Singer and Friedman argue
that whilst the threat of cyber terrorism in genuine, it
perhaps poses less of a challenge than the media has
previously reported. However, the authors do provide a
detailed overview of how terrorist organisations use the
Internet, especially with regard to spreading propaganda
and recruiting new members. Also, the fact that a Taliban
propaganda website was hosted by a server based in the
US is used to demonstrate the ease with which terrorist
groups are able to use the Internet because of its “virtual
anonymity”.
Aside from specific cyber threats, the book’s authors also
discuss the Internet in relation to issues of foreign policy
and human rights, and especially the need to balance
security with the online freedom of expression. Singer
and Friedman excellently demonstrate, using appropri-
ate evidence, that online freedoms are shaped at a coun-
try level by national cultures and histories, and not simply
by the type of government, i.e. democratic or authoritari-
an, that a nation state might have. One example that is
used is the fact that whilst the UK and Thailand are both
monarchies, it is illegal in the latter to defame the
monarch.
This book correctly points out that such differences can
present obstacles to the creation of international
definitions of what level of free speech is permissible
online.
Furthermore, this section also contains an informative
overview of the Tor network, and the potential problems
posed by it, especially with regard to criminal activity,
such as the ‘Silk Road’ black market website.
Crucially, the grey area of ‘patriotic hackers’ is also
covered by this section of the book. An analysis of this
emerging element of the cyber security landscape is
most welcome as it demonstrates that individuals,
non-state groups and national governments interact
within the cyber realm. Singer and Friedman use the
example of the ‘Estonian Cyberwar’ of 2007, during
which members of Nashi, a pro-Putin Russian youth
movement, carried out cyber attacks against Estonia
following the relocation of a Russian war memorial in
Tallin. It is vital that this facet of the cyber security
landscape is better understood, as the use of patriotic
hackerscanallowgovernmentstocarryoutcyber attacks
against rival states whilst being able to credibly deny that
such an operation was officially sanctioned, thus compli-
cating any potential response by the target state.
The authors of this book also consider other recent and
emerging cyber threats such as the Stuxnet computer
worm and its successors, together with the ethical issues
that the use of such weapons raises, how these weapons
function and what damage they can cause. When consid-
ering Stuxnet and similar cyber weapons, the greatest
service that this book provides is to clearly and accurately
argue that such weapons represent a ‘game changer’
with regard to cyber security. The issue of how military
alliancessuchasNATO,originallycreatedtofightconven-
tional, i.e. non-cyber wars, and which relies upon the
concept of collective security, should react when one of
its members is targeted by a cyber attack is also consid-
ered. A balanced assessment of this issue by those
concerned is essential if NATO is to remain relevant, and
this book can therefore only help to spur on such an
appraisal.
ThiscentralsectionofCybersecurityandCyberwar:What
Everyone Needs to Know also contains a very interesting
overview of US Cyber Command and of the Chinese
approach to cyber warfare.
19
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
This overview concludes with the proposal that the two
sides are fairly evenly matched, having both similar capa-
bilities and similar vulnerabilities. The connected issue of
how states can deter cyber attacks on each other when
attributing the origin of cyber attacks to a particular state
or other actor is still problematic is also considered.
As already noted, one of the main strengths of this book
is the evidence used by its authors to support their
conclusions. When examining whether cyber warfare
favours the weak or the strong, Singer and Friedman
note that in 2009, US troops in Iraq discovered that insur-
gents had used a cheap, commercially-available comput-
er programme called ‘Skygrabber’ to hack into US
surveillance drones and monitor their movements.
This example, which clearly demonstrates the potentially
‘levelling’ effect that cyber attacks can have during a
conflict between two otherwise asymmetrically-matched
opponents, has been well chosen by the book’s authors.
Despite the reality of cyber threats, Singer and Friedman
do an excellent job in maintaining a balanced outlook
whilst also making the reader aware of genuine concerns.
They stress that weaker states and non-state groups
mostlikelydonothavetheresourcesneededtocarryout
significant cyber attacks. However, they do concede that
malware can be developed and deployed by a small
group of experts, from the sub-state group level down to
the level of the individual. They conclude that in this new
“cyber arms race” multiple experts will more often than
not be needed in order to successfully carry out cyber
attacks, and that the idea of cyber attacks being carried
out by a “single teenaged hacker in his parents’ base-
ment” is often far from the truth.
The third and final main section of the book, ‘What Can
We Do?’ arguably takes a much wider look at cyber secu-
rity. However, this does not mean that the section lacks
the insight, accuracy or engaging style of the two previ-
ous chapters. The first main point that this section makes
is that different types of resilience are needed in order to
combat cyber security threats. Whereas cyber resilience
planning to meet traditional threats, such as extreme
weather events, relies primarily on redundancy capabili-
ties which can be engaged in the event that parts of a
network are rendered inoperable, security against
malicious cyber threats has to consider attackers who
know what parts of a network to target, potentially
including back-up systems. Furthermore, Singer and
Friedman again correctly stress the human factor in cyber
security and resilience, and how such efforts often hinge
ontheknowledge,professionalismanddiligenceofthose
individuals charged with implementing them.
The use by the authors of this book of non-cyber exam-
ples to engage with the reader and explain how cyber
securityeffortscouldbeimplementedisprominentinthis
chapter. For instance, Singer and Friedman use the work
of the US Center for Disease Control to explain how
computer viruses and malware may be combated in the
cyber world. Also, the authors use the example of how
maritime piracy was successfully confronted by nation
states during the so-called “Golden Age of Piracy”. They
argue that maritime piracy was successfully countered
through confronting the established markets, havens and
criminalstructuresthatallowedittoflourishandgenerate
a profit for its perpetrators.
Singer and Friedman propose that there are modern
cyber equivalents of these factors, such as online black
market trading websites and companies that tolerate
malware, allow cyber crime to flourish in a similar manner
to maritime piracy during its “Golden Age”. It is
proposed that if such havens were removed, then
committing criminal or malicious acts in cyberspace
would become more difficult. By using the “Golden Age
of Piracy” as a metaphor with which to engage with the
reader, Singer and Friedman have chosen well, as this is a
subject that has long been prevalent in popular culture.
Aside from the role of organisations such as the Interna-
tional Telecommunications Union, this final section of the
book also points out that, despite claims that due to its
transnational nature, the Internet is beyond the reach of
national governments, the systems that form the Internet
are located within nation states. This is a vital point, as it
demonstrates, contrary to what some believe, that
governments are still able to significantly influence the
operation of the Internet through the laws of individual
nation states.
20
BOOK REVIEW:
Cybersecurity and Cyberwar: What Everyone Needs to Know
byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014
To borrow a phrase from the text, “...there is no non-sov-
ereign, ‘free’ part of cyberspace”. This final chapter of
the book also offers an interesting perspective on cyber
securityexercises.Theauthorsarguethat,despitemutual
suspicion, joint US-Chinese cyber security exercises have
the potential to reduce tensions between the two coun-
tries regarding activity in cyberspace. This viewpoint
does not seem to have been widely reported or
discussed in the media, meaning that this concept may
be fresh and new to many readers.
In short, this book is a genuine must-read for anyone
interested in cyber security issues, regardless of their
background or level of expertise. Singer and Friedman
present a lucid, concise and highly informative break-
down of current cyber security matters and their implica-
tions at the global, state, corporate and individual levels.
Aside from the highly informative arguments and
evidence featured in this book, the style in which it is
written allows it to appeal to both experts and newcom-
ers to the subject of cyber security. We can say no more
than this book is essential reading in the modern world.
21
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Who turned out the lights?
14 August, 2003: a major failure of the electrical grid led
to what became known as the 'Northeast Blackout',
during which most of the North-Eastern United States
(US) and Canada were plunged into darkness. Over fifty
million people were left without power. Airports,
railroads, oil refineries and factories had to close. Also,
utilities such as gas and water did not have the pressure
capacity to provide any services, resulting in inoperative
petrol stations and putting the water supply at risk of
contamination.Furthermore,wheregeneratorsranoutof
fuel, cellular communications were disrupted or taken
down entirely. There was mass panic as well as reports of
looting and violence, and emergency services could not
respond in the face of such demand - that's if the calls got
through. The Anderson Economic Group places the total
economic loss for the United States at a mid-point
estimate of $6.4 billion.
The entire ordeal lasted barely two days.
Two weeks later, the same thing happened in London,
albeit on a much smaller scale. A failure in the National
Griddisrupted60%oftheLondonUndergroundnetwork
at the peak of the rush-hour. 1,800 trains and 250,000
“WHATDOESN’T KILLYOU”
CyberResilience andThreat
BY Marika N. Josephides
people were affected. This power failure lasted around
forty minutes. Both of these cases prompted extensive
inquiries and investigations. Theclose timing of the black-
outs understandably raised questions of possible
malicious intent, and the prospect that they had been
terrorist attacks was not ruled out. It was eventually
determined that in both cases the fault lay in a mixture of
human error and faulty equipment. One of the trigger
culprits in the Northeast Blackout, as the media enjoyed
pointing out at the time, was an intrepid tree. Whatever
the reasons for the blackouts, the results of the relevant
factors would lead anyone to ponder on the fragility of
modern civilisation and the interconnectedness of its
critical infrastructure. What prompted the Northeast and
London blackouts were innocent mistakes.
The Cyber Threat Picture Today
Innocent mistakes such as the above examples, however,
do not preclude the possibility that malicious cyber-at-
tacks by state and sub-state actors could achieve the
same results. A blackout of sustained duration - even if it
were restricted to one branch of infrastructure - could
assist or supplement a military or physical attack.
TorontoduringtheNortheastBlackoutof2003.Source: Camerafiend;obtainedviaWikipedia.
23
Over ten years on from the Northeast and London black-
outs of 2003, we have seen this concept of a combined
strike implemented during Operation 'Orchard', carried
out in 2007. During this operation, Syria's sophisticated
air defence system was blinded, allowing the Israeli Air
Force to execute an attack on a nascent undeclared
nuclear reactor site. The cyber element was integral to
the operation as a whole. This is an illustration of former
Director of the CIA (2009-2011) and US Secretary of
Defence (2011-2013) Leon Panetta's much quoted
"cyber Pearl Harbor" scenario. Similarly, the oft-chroni-
cled Stuxnet worm which took down yet another nuclear
site in Natanz, Iran, put Advanced Persistent Threats
(APTs) firmly on the cyber security map.
This is not to say that malicious cyber activity has to be
military in nature. It has recently been revealed that
Finland's Ministry of Foreign Affairs (MFA) experienced
cyber infiltration into systems with external connections.
It has been confirmed that no sensitive internal data was
compromised, but some diplomatic communications
may have been extracted. The attack was an APT that
had been in the relevant system for up to four years, and
there is no lack of skill in MFA cyber security. This
highlights the nature of cyber-espionage in general -
stealthy, often undetectable, and impossible when it
comes to attribution. It is sufficient that only a small
vulnerability in the system is exploited.
Yet another cyber security threat is exemplified by the
theft of £1.3 million from Barclays Bank in April 2013. In
this successful case of cyber theft, all it took was a small,
organised criminal network to send a man into a London
branch of Barclays under the pretence of being an IT
contractor. He attached a 'keyboard video mouse' switch
with a 3G router to one of the computers. The criminal
organisation could then remotely transfer funds to bank
accounts at their leisure. Fortunately, the group was
rounded up and the funds were restored. And of course,
one cannot speak of cases of cyber theft without men-
tioning the huge breach of the Sony PlayStation Network
in 2011, in which about 100 million user accounts were
compromised, causing concern regarding identity fraud,
which one cannot trace. The possible expenses to Sony
from the data theft were estimated at $171 million, but
no money was actually stolen in the breach. The informa-
tion heist was perpetrated by a 19-year-old hacker living
in his parents' house, and was done 'for the lulz'.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
All of the above cases, and many more far too numerous
to outline here, underscore the scope of the cyber threat
inawidevarietyofsectors,byanynumberofactors,from
a large number of attack vectors and for numerous
reasons.
Though cyberspace and all its stakeholders are global, it
is helpful to examine the issue further from the perspec-
tive of a developed country with a cyber strategy of its
own – the United Kingdom (UK). This way we can come
to an assessment of mitigation, prevention and policy
against a worse-case scenario in a country that publicly
aims to be as prepared as possible.
The Internet alone accounts for 6% of UK GDP. This does
not include transactions that are facilitated by or are a
by-product of the Internet through advertising. The Inter-
net has enabled 21% of GDP growth across developed
countries during the period 2005-2010. If the Internet
were a consolidated 'sector' it would dwarf both utilities
and agriculture.
Critical infrastructure and related processes are almost
entirely managed by forms of SCADA ('Supervisory
Control and Data Acquisition') technology. They are
controlled remotely by computers and communications
networks. These processes include oil and gas pipelines,
water distribution, the electrical grid and railway opera-
tions and signalling. A 2011 report by McAfee, an Ameri-
can-based computer security software company, found
that nearly two-thirds of critical infrastructure companies,
publicandprivate,statedthattheyregularlyfindmalware
with the potential to sabotage their systems.
Evidently, attacks that aim to cause levels of disruption
comparable to the Northeast Blackout - be it with a Deni-
al-of-Service (DOS) or an APT attack, or something else-
are not beyond the pale of attacker ambition or
possibility. Cyber resilience has therefore become a
priority.
Bouncing Back: Cyber Resilience
The World Economic Forum defines cyber resilience as
"the ability of systems and organisations to withstand
cyber events, measured by the combination of mean
time to failure and mean time of recovery." This breaks
down to two factors: prevention and mitigation. If this
seems like a defensive reactive concept, it is.
24
It evokes past US Secretary of Defence (under Gerald
Ford 1975-1977 and George W. Bush 2001-2006) Donald
Rumsfeld's 'unknown unknowns' - but the blurring of
online boundaries makes it so. The interconnectivity
between individuals, organisations and the state inher-
ently increases the risk of unpredictable shocks to the
entire system, and this is exacerbated by the advent of
cloud computing. Prevention and mitigation with a clear
emphasis on the human element would therefore be a
realistic and effective focus.
This is the policy approach taken by the UK. The National
Security Strategy places "hostile attacks upon UK cyber-
space by other states and large scale cyber crime" as a
Tier One threat - putting it at the highest priority level -
stressing "risk and resilience" in the face of "new systems
of influence." It is consonant with the UK Cyber Security
Strategy (UKCSS), the second objective of which is to
make the UK "more resilient to cyber attack and better
able to protect our interests in cyberspace." It makes the
point that all networked systems are potentially vulnera-
ble and that these vulnerabilities can appear anywhere
withintheinformationlifecycle.Theappropriateresponse
is thus determined to be one utilising risk-based
measures.
UKCSS adopts a holistic approach that aims to establish
compliance norms, support and coordinate with
businesseslargeorsmallinrelationtoboththepublicand
the private sector, and inform the public as to how to stay
safe online. The UK Government put in place a £650
million, four-year National Cyber Security Programme
(NCSP) in order to facilitate this. The Office of Cyber
Security and the UK Cyber Security Operations Centre
(CSOC) were opened to improve detection of cyber
security threats. The most capital-intensive initiative of
the NCSP was funding to the UK intelligence community
in aggregate, constituting £157 million of NCSP money -
see breakdown (see Figure 1). The Centre for the Protec-
tion of National Infrastructure (CPNI) intensified its
approach and coordination against threats from cyber-
space. The National Cyber Crime Unit (NCCU) was also
conceived to operate as part of the National Crime
Agency(NCA).Itistooearlytocommentonthisdevelop-
mentasthelatterorganisationissonew,buttheNCCUis
intended to provide a co-ordinated national response to
cybercrime.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
This could also be seen as a shift of intent as well as
capability - the NCA has executive powers, which include
the power of arrest.
To reiterate, huge emphasis has been put on public-pri-
vate partnerships and industry-led standards. The
Department of Business, Innovation and Skills is one of
the major Government leads in the UKCSS. This is due to
thevulnerabilityofbusinesses,forwhichtheprofitmotive
sometimes interferes with choices in cyber security. Small
andmediumenterprisesinparticulararevulnerableinthis
respect. In 2012, 60% of those surveyed had suffered a
malware attack. A 2012 PricewaterhouseCoopers survey
found that 93% of large corporations and 76% of small
businesses had experienced a cyber security breach that
year. And of course, the UK’s system of quasi-privatisa-
tion means that large sections of the critical national
infrastructure belong to private businesses.
The cynical may declare that most of this strategy
amounts to a grandiose awareness campaign. Our rebut-
tal would be that the global and mostly asymmetric
nature of the threat means that absolute prevention is
impossible, and in a situation where the entire chain is
only as strong as its weakest link, widespread awareness
and action is absolutely necessary. Government Commu-
nications Headquarters (GCHQ), the UK's provider of
signals intelligence and information assurance, estimates
that on balance, 80% of attacks are preventable by
"simple best practice." This could be something as
simple as remembering to log out, updating anti-virus
software, or confirming the identity of a contractor, which
would, incidentally, have prevented the Barclays theft of
April 2013.
On the world stage, the UK ratified the 2001 Budapest
Convention on Cybercrime in 2011, the same year that
the Strategy was consolidated. Questions were raised
regarding the practical usefulness of this initiative, the
argument being that it would be ineffective without the
involvement of Russia and China, from where a dispro-
portionate number of attacks originate.
25
Figure 1-NationalCyberSecurityProgrammeExpenditure
Breakdown2012.Source:CabinetOffice,www.gov.uk
Practical Solutions: Prevent and Mitigate
We shall turn next to the further ways through which the
cyber threat can be managed. A totally secure chain all
down the line of stakeholders cannot be guaranteed, for
the aforementioned reasons, but it can be helped by
various measures. Businesses can and should implement
contingency and response plans to mitigate the effect of
attacks, especially in sensitive industries. Law firms, for
example, are in possession of valuable information that is
of particular interest to hackers, such as client data and
intellectual property material. Yet only 35% of surveyed
law firms had cyber response plans in place, and only 9%
have produced cost estimates relating to cyber attacks,
as opposed to 26% of businesses in other sectors,
according to a Hildebrandt Institute survey of 2013. This
indicates a more general theme in how businesses gener-
allyrelatetocyberissues.Apartfromtheaforementioned
profit motive considerations, there is also the unfortunate
fact that sometimes functionality and security are a
trade-off. Cyber issues can also seem obscure to people
who are not 'computer literate’, and this is equated with
irrelevance by the human ego. Additionally, internal secu-
rity and confidentiality breaches not related to cyber
matters have been a more traditional concern,
particularly in law firms.
There is no lack of structural and institutional prevention
andmitigationmeasuresbusinessescantake,ifresources
allow it (which is often the issue which halts these initia-
tives at their inception in conference rooms).
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
IT security audits can be performed; specialised employ-
ee training can be conducted; security liability insurance
can be purchased; and of course response plans no
matter how rudimentary are better than no plan, even if
they simply establish a team that can be contacted or
assembleachainofcommandtodealwiththesematters.
Deloitte recommends a 'graceful degradation' approach
against DOS attacks, which are the most common type.
'Graceful degradation' is a method of pre-emptive
planning, using a pre-defined set of responses that allow
systems to continue operating sub-optimally. Essentially
this just means that the firm in question, having
established 'configurations' of system failure, would
know how to continue working while these configura-
tions are compromised, from the detection of the vector,
up until recovery.
Market-Wide Exercises (MWEs) are also a viable route,
pertinent to industries considered part of the critical
national infrastructure. MWEs are stress tests involving a
wide range of relevant parties. A major MWE, named
'Operation Waking Shark II' - a sequel to 2011’s ‘Waking
Shark’tookplaceintheLondonfinancialsector(obviously
a hugely desirable target) on 12 November 2013. It was
co-ordinated by the Bank of England, the Treasury, and
the Financial Conduct Authority. As well as GCHQ, the
CPNI, and the CSOC, employees across 87 firms were
involved. These included banks, exchanges, hedge
funds, brokers, and asset managers.
Reports on the exercise’s conclusions have not yet been
released at the time of writing, but Waking Shark 2011,
set against the backdrop of the London Olympic and
Paralympic Games, successfully highlighted vulnerabili-
ties to be improved upon, largely concerning co-ordina-
tion among services, particularly (worryingly) CHAPS
(Clearing House Automated Payment System) transac-
tions, the latter of which facilitate same-day transfers and
are used all around the UK for business and personal
purposes, as well as in mortgage advances. Firms were
promisingly effective at maintaining the provision of
services. While such tests are valuable in finding where
the weak spots are, criticism has been levelled at their
infrequency and lack of focus on accidental breaches and
fraud. Of course, they are also lacking in the element of
surprise. Additionally, a more sophisticated, subversive
attack will evade immediate detection, and may not even
be correctly identified until significant damage is done.
26
We have already discussed the importance of the human
element in cyber security. All it can take is somebody
forgetting to log out. For this, all that can be done is to
advise people to exercise caution, a lack of which - to
reiterate - leads to 80% of attacks, as posited by GCHQ.
Unfortunatelycommonsenseisnotsocommon.Another
suggestion is the implementation of biometric authenti-
cation; this is a burgeoning field.
The Bottom Line : So What?
Defence Secretary Philip Hammond confirmed in
September2013thattheUKwas"developingafullspec-
trum cyber capability, including a strike capability." This
move confounded the world - what purpose would this
announcement serve? China, Israel, Russia and the US
had all kept quiet about their cyber activity (at least
officially) despite said activity being obvious. At best, the
UK was losing its claim to the 'moral high ground'.
At worst, it is tempting fate - 'for the lulz' hackers have
been motivated to action by much less. (For example:
when the CEO of HBGary Federal, a computer security
firm, threatened that he could unmask hacktivist collec-
tive Anonymous, they completely destroyed the compa-
ny’s data, accessed and published sensitive e-mails, and
defaced the company's website) Alternatively, it could
just be a politically expedient move to emphasise the
importance of cyber initiatives.
Inanycase,concernhasbeenexpressedelsewhereinthe
UK Government. Director of GCHQ Ian Lobban's assess-
mentisthatthethreatismostprominentlyfromstateand
state-affiliated actors who have improved the speed at
which they can proceed from reconnaissance to activity.
Theramificationsonthemilitaryfromtheentwinementof
military capability and the defence industry are also an
issue, and it is at industry level that technological advanc-
es are compromised. On this front, more stringent
measures in manufacturing and supply chain manage-
ment could be used, such as better vetting of personnel.
In the final analysis, there may be too much worrying
going on. Experts think it extremely unlikely that the
whole Internet and major systems would or could all be
taken out at once, due to the decentralised way these
networks operate.
“WHATDOESN’TKILLYOU”
Cyber ResilienceandThreat
BY MARIKAN.JOSEPHIDES
To a certain extent the threat may have an element of the
self-fulfilling prophecy, and we may not be facing a
scenario worthy of a blockbuster action film. But the
convergenceofourphysicalandvirtualworldsmakes this
acauseofconcern-aDOSattackonahospital,forexam-
ple, could cost lives. Losing control of our online identity
is akin to losing control of our lives. And a 'proxy server'
war will most definitely contribute to international
tensions offline.
AwesomeFace/EpicSmileyisaubiquitousmeme,often usedto
conveyeitherdisapproval, orthat one hasacted
'forthe lulz.'(Source:TheInternet-Inattributable)
In many ways, the response to the cyber threat -
mitigation and prevention - is analogous to dealing with
'traditional' forms of terrorism in this age of uncertainty.
Indeed, the Irish Republican Army message addressed to
the Thatcher Government after the Brighton Bombing in
1984 is entirely relevant to the subject of our discussion:
"Remember we only have to be lucky once. You have to
be lucky always."
27
Due to the inglorious legacy of the lost generation (the
lost opportunities in economics after 1990 where Japan’s
economy stagnated and its governments became
progressively weaker) Japan now confronts multiple and
possibly increasingly difficult security challenges. After
1990 Japan experienced underperforming governments,
its economy stagnated, and the linkage between weak
governments and economic performance is not coinci-
dental.
In 2011 the Fukushima earthquake and related nuclear
meltdowngeneratedaprofoundinternalshockandcrisis.
Meanwhile the spectacular rise of China brought a major
rival into being and the United States’ (US) power
declined due to profligate economic policies and an
unprecedented level of strategic incompetence from US
governments. Thus Japan did not escape the global
economic crisis which has existed since 2008 and also
faces profound demographic challenges as its birth rate
remains far under the population level of 2.1 children per
family that is the established replacement rate while
Japan is also not welcoming to immigrants who could fill
the gap.
This set of socio-political-economic challenges has only
encouragedbothNorthKoreaandChina,ifnotRussia,to
attempt to take advantage of Japan’s perceived decline
and/or weakness, the former through claims to the East
China Sea and what appears to be a constant game of
sabre-rattling and psychological warfare involving the
threat of force while North Korea’s increased missile
capability and nuclear arsenal clearly represent threats to
Japan.
Meanwhile Russia regularly sends aircraft into Japanese
airspace even as it negotiates normalisation and other
accordswithJapan.Toanoutsideobserveritseemsclear,
therefore, that to address these internal and external
issues Japan needs to generate a robust invigorated
government that could tackle both its economic malaise
and the multiplying military threats to its security. From a
national security standpoint both the domestic reforms
and Prime Minister Shinzo Abe’s foreign and defence
policies are inseparable parts of a single programme of
action. Geoeconomics and geostrategy march hand in
hand in Abe’s programme.
Japan Responds toMultiple SecurityChallenges
BYSTEPHEN BLANK
TheAbeGovernment,bywinningadecisiveParliamenta-
ryelectionin2013,canalreadyprovidestrongandsteady
government until 2016. Moreover, Abe has promise such
leadershipandactedvigorouslytoregeneratetheecono-
my. He has already increased government spending and
the money supply. Increased government spending also
means a substantial rise in defence spending to augment
Japan’sownmilitarycapabilities.ButnowAbemustenact
genuine structural reform and thus confront the
entrenched lobbies who benefit from the status quo but,
by so doing, inhibit Japan’s growth and comprehensive
national power. Indeed, not all observers are convinced
that he is dong so or will do so, in which case they expect
his reforms to enjoy only limited success.
But economic reform is not confined to Japan. Japan
must diversify its exports lest it become too dependent
ontheChinesemarket. Japanreceivedarealshockwhen
China, during the period 2010-2011, started restricting
the sale of crucial “rare earth” minerals that are vital to
Japan. However, by going abroad in response to China’s
artificial increase of prices, Japan successfully elicited
other countries’ production of rare earths to the point
where prices have declined 60% since 2011. Essentially
the market broke the Chinese monopoly. Likewise,
during his travels, Abe is accompanied by large business
delegations to promote exports of nuclear reactors,
other infrastructural items, and arms.
Abe’s expansionary currency policy lowers the Yen’s price
abroad leading to more exports.
PRIME MINISTER SHINZO ABE
(IMAGE SOURCE : WIKIMEDIA COMMONS)
28
In a concurrent example the Abe Government has made
clear its intention to revise the Japanese Constitution.
While this initiative would include revisions of Article 9 on
Japan’s army being used only for self-defence instead of
the collective defence that the Japanese Government
prefers, such significant reforms are by no means only
confined to the defence sector. Meanwhile, within that
sector, Abe has also enacted legislation creating a
Japanese equivalent to the US National Security Council.
The revived nationalism inherent within Abe’s
programme will probably help him create a domestic
consensus but it also creates significantly more tension
with South Korea (ROK) and precludes effective military
cooperation with the ROK because to Seoul it appears
thatJapanstillcannotadmititshistory. Thisalsoaddsfuel
to the fire in China as it provides Beijing and domestic
Chinese nationalist elements with both the means of
inciting hostility towards against Japan and a way to
pressure the Chinese Government to add nationalist
emotionalism to the already substantial geostrategic
rivalry with Japan.
Foreign Policy Challenges
Because domestic reform and the reduction of external
security threats are linked, it is quite possible that the test
of Abe’s success will come not just in the success of his
economic reforms, but also in foreign and defence policy,
where his government has been equally active and vigor-
ous. Japan, like other Northeast and Southeast Asian
states confronts what is arguably a deteriorating security
situation.
Many but by no means all of the forces responsible for
this trend pertain to the rise of a seemingly increasingly
belligerent China. As Dr. Corey Wallace, Professor of
International Politics at the University of Auckland has
recently written, “Strengthening economic cooperation
and interdependence between nations in Northeast Asia
from the late 1990s seems to have had little impact upon
the persistence of diplomatic and security tensions in the
region.”
But we cannot forget about the North Korean threat.
Whether or not North Korea plans another major weap-
ons test, its missile and nuclear programmes continue
apace and nothing to date has stopped them.
JapanRespondstoMultiple Security Challenges
BYSTEPHENBLANK
TheAbeGovernment,bywinningadecisiveParliamenta-
ryelectionin2013,canalreadyprovidestrongandsteady
government until 2016. Moreover, Abe has promise such
leadershipandactedvigorouslytoregeneratetheecono-
my. He has already increased government spending and
the money supply. Increased government spending also
means a substantial rise in defence spending to augment
Japan’sownmilitarycapabilities.ButnowAbemustenact
genuine structural reform and thus confront the
entrenched lobbies who benefit from the status quo but,
by so doing, inhibit Japan’s growth and comprehensive
national power. Indeed, not all observers are convinced
that he is dong so or will do so, in which case they expect
his reforms to enjoy only limited success.
Moreover, the domestic situation in North Korea is clearly
quite unstable given the execution of Kim Jong Un’s
uncleandformermentorJangSongThaekon12Decem-
ber 2013 and the subsequent purge of his associates
amid allegations of his attempting to mount a coup
against his nephew. These allegations are unprecedent-
ed in that they publicly reveal dissent and division at the
most senior levels of the Government of North Korea
(DPRK) that can only add to the pervasive sense of
unease and instability inherent in dealing with the DPRK.
Adding to Japanese concerns is the fact, according to
Wallace, that Japanese officials discern a lack of serious-
ness among their negotiating partners in stopping the
expansion of North Korea’s nuclear and missile
programmes that threaten Japan. These officials also
believe that China is enabling and not restricting North
Korea. As tensions with South Korea over rival histories
and nationalisms frustrate bilateral cooperation between
them and trilateral cooperation with the US, Japanese
officials evidently perceive China as being unable or
unwilling to restrain North Korea.
Atthesametime,theChinesethreatismulti-dimensional,
being both military and economic, as the rare earths
episode and the continuing crises in both the East China
and South China Seas indicate. Thus China presents an
extraordinarily difficult series of challenges to Japan.
Additionally, Japanese officials increasingly fear not just
the obvious rise in Chinese capabilities and the
threatening rhetoric of the People’s Liberation Army,
29
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Monitor Magazine Relaunched-2 copy

  • 1. MONITORSECURITY INTELLIGENCE RESILIENCE STRATEGY RELAUNCH EDITION
  • 2. Dear Reader, Welcome to the first edition of the re-launched ’Monitor’ magazine and the return by SIRS Consultancy Ltd to the publication of a regular journal devoted to the widest possible range of security and resilience issues. We hope that this, in addition to the larger projects on which the company is currently working, will help to generate increased awareness of relevant matters including security threats, terrorism and counter-terrorism, intelligence, policing, geopolitics, current military issues, and also resilience efforts to meet both malicious and non-malicious threats. This first issue of the new ‘Monitor’ certainly aims to meet this requirement, containing as it does articles focusing on a variety of areas. These include European energy resilience, cyber security since the emergence of Stuxnet, ongoing tensions between Japan and China, cyber resilience planning and practice, the security of Heathrow Airport and how local communities should aim to prepare for the impact of natural hazards, such as flooding. Additionally, this edition of ‘Monitor’ features an in-depth review of an excellent new book on cyber security, Cybersecurity and Cyberwar: What Everyone Needs to Know, by P.W. Singer and Allan Friedman. The articles featured in ‘Monitor’ are all written by experts in relevant fields, who come from a variety of professional backgrounds. ‘Monitor’ aims to appeal to both established specialists in the fields that the magazine covers, and also to members of the wider public who may be interested in the issues under scrutiny. In today’s uncertain world, we believe that an awareness of security and resilience issues must spread beyond those who already have significant work experience in relevant fields. Security and resilience matters of all types could potentially have an impact on individuals throughout society, and it is with this in mind that ‘Monitor’ is being re-launched. We hope that you find ‘Monitor’ both interesting and informative, and that you will continue to read the magazine as it progresses and develops. EDITORIAL Images in this publication may be under copyright. Copyright © SIRS Consultancy Ltd. No part of this publication may be reproduced copied or transmitted in any form or by any means stored in any information storage or retrieval systems without the publishers express permission. Although every effort is made to ensure the accuracy and reliability of the material published. SIRS Consultancy can accept no responsibility. Editor : SIRS Consultancy Ltd. info@sirsconsultancy.com monitor@sirsconsultancy.org.uk Company Website : www.sirsconsultancy.com Twitter : @SIRSconsultancy 2 Thanks to our contributors : John Palser Luigi Castellani Warren Dym Marika N. Josephides Stephen Blank Dan Solomon
  • 3. CONTENTS HEATHROW : THE ETERNAL TARGET BY : JOHN PALSER RESILIENCE : BACK TO THE PAST BY : LUIGI CASTELLANI ENERGY RESILIENCE RUSSIA, UKRAINE, AND THE PROSPECT OF ANOTHER GAS WAR BY : WARREN DYM BOOK REVIEW CYBERSECURITY AND CYBERWAR: WHAT EVERYONE NEEDS TO KNOW “WHAT DOESN’T KILL YOU” CYBER RESILIENCE AND THREAT BY : MARIKA N. JOSEPHIDES JAPAN RESPONDS TO MULTIPLE SECURITY CHALLENGES BY : STEPHEN BLANK CYBER RESILIENCE : THE NEVER-ENDING STRUGGLE BY : DAN SOLOMON SIRS : AN INTRODUCTION 3 4 5 9 13 17 23 28 34 Images in this publication are not original to SIRS Consultancy Ltd.
  • 4. SIRS Consultancy Ltd is a UK-based company, created in early 2011, which focuses primarily on the research and analysis of current intelligence, security, geopolitical and resilience issues. Since its establishment, SIRS has created and maintained a proven track record of providing accurate and timely insights concerning current and emerging security matters. During its initial year of operation, SIRS was the first company to create and publish as comprehensive report, titled ‘National Security Risks: Immediate Challenges Before Summer 2012’, which focused on the whole range of security threats and resilience issues that Britain faced prior to the 2012 Olympic and Paralympic Games. The Parliamentary launch of this major report, in conjunction with cross-party political entities such as the All-Party Parliamentary Group on Specialist Security and the House of Commons Home Affairs Committee, allowed SIRS to forge its initial links with the UK political community, which still continue. Furthermore, several recommendations made in this report were included on the British Army’s intranet as training material. SIRS was able to further capitalise on the success of its first major project by producing ‘Summer 2012 Threats: The Final 10 Weeks’ in May 2012. This focused on and explored the security and threat picture faced by Britain during the last two months before the 2012 Olympic Games, and served to provide an update and expand upon the conclusions of ‘National Security Threats: Immediate Challenges Before Summer 2012’. Furthermore, ‘Summer 2012 Threats: The Final 10 Weeks’ generated significant interest in SIRS as a company, and resulted in SIRS staff being interviewed by mainstream media outlets including BBC News Channel, Sky News, BBC Radio London, BBC Radio Five Live and ABC Radio Australia. SIRS’ increasing relationship with media outlets has provided the company with significant and valuable experience in media liaison, and in supplying the media with concise and relevant analyses of current security and intelligence issues. Aside from its larger projects, SIRS Consultancy personnel have also written or contributed to articles on numerous relevant issues. These have included concerns as diverse as Islamist terrorism in the Maghreb and Sahel regions of Africa, cyber security, emergency response communications, ‘lone wolf’ terrorism and also the prospects for future peace and stability in Afghanistan. Furthermore, SIRS has also carried out extensive research to support projects by external clients. These projects have focussed on matters including the threat posed by al-Shabaab, piracy in the Indian Ocean, Mediterranean maritime security, and the size of the European Union’s state and private sector intelligence communities. As a result of the range of different projects that SIRS has worked on during the three years, the company’s personnel are highly flexible and adaptable in their approach to their work, and are able to work alone or in groups on projects of any size. Throughout 2012, SIRS Consultancy published the initial version of ‘Monitor’ magazine. As with the re-launched ‘Monitor’, this magazine featured articles covering as diverse a range of relevant security and intelligence matters as possible. Contributors to the original ‘Monitor’ came from a wide variety of professional backgrounds including private sector security analysis, academia, the military and law enforce- ment. ‘Monitor’s’ scope in terms of content was global, with individual sections examining security or intelligence issues affecting particular countries, regions or continents, with other sections looking at more universal matters such as the technology of security, physical security, and lessons that can be learned from effective or ineffective responses to major incidents, such as terrorist attacks or ‘active shooter’ situations. Our aim is for the re-launched ‘Monitor’ magazine to be just as broad, if not broader, in the scope of its outlook and content. The original ‘Monitor’ ended its run in October 2012. This was due to significant staff changes as SIRS Consultancy, together with the emergence of new, large scale company projects which otherwise occupied the majority of SIRS’ personnel. Also, SIRS staff have, since the end of ‘Monitor’s’ original run, been working on their own independent projects concerning current security and intelligence issues, and furthermore have used the interim period to undergo relevant training in areas such as advanced intelligence analysis, source evaluation and the use of open-source research tools. These new skills will allow SIRS Consultancy’s staff to widen their professional remit and improve the level of service that the company can provide to clients. SIRS as a company is therefore more capable than ever. SIRS : AN INTRODUCTION 4
  • 5. Heathrow: The EternalTarget BY John Palser As a modern transport hub, London Heathrow Airport is vital to the United Kingdom's (UK) economy and the country’s reputation around the world. The airport’s metrics provide a clear run-down of its significance: “total size of 1,227 hectares, two main runways, over 76,000 staff, 1,305 air movements daily, 86 airlines and 183 desti- nations served in 90 countries and average daily passen- ger numbers (both arriving and departing) of 190,100” (Heathrow Airport: Facts and Figures). With such expan- sive operations and passenger capacity, maintaining the airport's security is of paramount importance. But just what standards are currently being employed? More importantly, are they of a nature sufficient to counter the continuing terrorist threat to the UK? The scars of the 11 September 2001 terrorist attacks againsttheUnitedStates(US)(9/11)continuetorundeep within the international commercial aviation sector. Much of the current capacity for operational judgement and planning is a direct result of that day and, mercifully, a duplicate attack has not yet materialised. However, while many airports around the world were forced to re-exam- ine their security arrangements and admit their porosity, Heathrow was a facility acutely aware of terrorism. Admi- rable preventative measures, gained from experience, were being taken prior to 9/11. London has always repre- sented a fertile breeding ground for terrorist and extrem- ist groups holding both domestic and international agen- das. As part of the critical national infrastructure with significant international links, Heathrow is the very defini- tion of a prime target. A SUCCESSFUL ATTACK ON HEATHROW WOULD DAMAGE THE UK'S INTERNATIONAL REPUTATION. (IMAGE © JOHN PALSER) Plots involving the airport prior to 9/11 were directed both at the UK and against ‘proxy’ targets of foreign powers, such as national airlines. One such case occurred on 17 April 1986 when a Syrian intelligence official, Nezar Hindawi,coercedhisfiancéintoboardinganEl-Alflightto Israel. At the gate “a vigilant security officer noticed that a supposedly empty bag was unexpectedly heavy, despite having been x-rayed. When stripped down, a blue plastic package was discovered containing an orange substance resembling Semtex. The passenger had passed through Heathrow security before being allowed to enter the transit lounge. However, El-Al ran their own security and was not content to depend on anyone else. The bomb was discovered and the lives of 374 people were ultimately saved” (Gurney 1993, 178). However, it is not only threats from within the airport that Heathrow security has had to contend with. In 1994, three attacks on Heathrow were orchestrated by the Irish Republican Army (IRA) from outside the perimeter fence. On10March,“aNissancarwaspositionedinthecarpark of the Excelsior Hotel opposite Heathrow Airport. Three mortars were fired from its boot and landed close to the northern runway. Just after midnight on 11 March, the IRA struck again, sending four mortar shells toward the southern runway. A third attack on the morning of 13 March made a mockery of security, a timing device enabling the terrorists to bury the third launcher days before the attack” (Dillon 1994, 298). The immediate effect of 9/11 was a significant augmenta- tionofsecurityregardlessofcost.Thiswenthand-in-hand with the consideration of who held ultimate responsibility for such measures? Should Heathrow Airport, the UK Governmentandthesecurityservicesformacollectiveor should the airlines be expected to bear the financial burden? A prime example of this was the case of the UK-based Smiths Group, “which saw annual revenue from its detection gear rise after 9/11 from about £130m to £574m – an indication of the costs that have been passed on to passengers. Aviation security is a matter of national security and state security. Businesses don't pay for police on the streets. 5
  • 6. Heathrow:The EternalTarget BYjohn palser Yet for some reason aviation is singled out to pay for security against threats that have nothing to do with aviation but more to do with powerful geopolitical forces” (‘The Guardian’, 7 September 2011). However, aside from a surge in investment for additional security equipment for screening passengers and luggage, and restrictions on certain items such as penknives and scissors,therewasnoreal‘overhaul’ofHeathrow’ssecuri- ty. Compared to the endemically lax security within major US airports, particularly the likes of Logan, Dulles and Newark from where the 9/11 flights had originated, Heathrow’s existing operations were admirable. The Metropolitan Police continued to provide security both in the terminals and on the perimeter roads, the British Airports Authority (BAA) and the Department for Trans- port worked to ensure high standards of border control and, as a result, passengers were able to undertake their journeys with minimal delay. It would be subsequent UK plots which would impact Heathrow’s security provisions much more indelibly. The parameters put in place after 9/11 were in no way a cure-all. Rather, they provoked a mutation in terrorist thinking and a re-imagining of tactical approach. An immediate example was the threat of a plane being shot down on take-off. Disaster was narrowly avoided when a missile attack on an Israeli airliner over Mombasa in 2002 came to naught. By 2005, Heathrow was in the cross hairs. British police “arrested Kazi Rahman. Undercover police and MI5 officers had negotiated with him for three months as he upped the stakes and offered more cash. His wish list included Man Portable Air Defence Systems (MANPADS), a shoulder launched surface-to-air missile. Several years earlier in 2003, police had discovered what seemed to be early plans to use such weapons around Heathrow’s perimeter fence. It looked like someone had flattened the ground in preparation for bringing them in. Heathrow’s dedicated patrols were stepped up, random- ly checking places on the perimeters from which planes could be shot down” (Hayman 2009, 340). By far the most significant impact on Heathrow’s security came in 2006. In a case almost beyond imagining, “more than 4,000 people could have been killed if bombers had succeededinblowinguptenflightsfromtheUKtoAmer- ica – a death toll worse than 11 September 2001. Deputy Commissioner of the Metropolitan Police, Paul Stephen- son, said ‘We are confident we have disrupted a plan by terrorists to cause untold death and destruction. Put simply, this was intended to be mass murder on an unimaginable scale’. Hand baggage has now been banned from all UK airports. No liquid was allowed to be carried on board and passengers who did manage to fly were given clear plastic bags for their travel documents and wallets. It is thought the gang were plotted to conceal liquid explo- sives inside drink bottles and trigger the device with the flash from a disposable camera” (Metro, Article 1, 11 August 2006). This plot directly impinged on the travel- ling public's freedoms and on Heathrow’s procedures for monitoring individuals and their belongings. Even though the plot was a failure, the fallout was still significant in terms of general disruption. In monetary terms for exam- ple, “British Airways shares fell five per cent, wiping £200 million off the company’s value. Accountants Grant Thornton said the disruption could cost the whole econo- my at least £3.2 million for every hour of delay through lost productivity. An average three hour delay could lose Britain £10 million a day” (‘Metro’, Article 2, 11 August 2006). But fail it did and if one thing was aptly demon- strated, it was the importance of Heathrow’s on site secu- rity being supported by the covert actions of the police and security services in foiling potential attacks. THE POLICE AND SECURITY SERVICES HAVE MANAGED TO PREVENT A NUMBER OF PLANNED ATTACKS. (IMAGE © JOHN PALSER) 6
  • 7. Heathrow:The EternalTarget BYjohn palser Had the plot succeeded, the levels of international criticism which would have been levelled at the UK can only be imagined. Conversely, public confidence in flying from Heathrow would also have been irreparably damaged. More than 9/11, the liquid bomb plot has continued to shape Heathrow’s security capability and significant technologicaladditions.Withintheairport,aprimeexam- ple is “the Aurora Facial Imaging Recognition system, the most advanced to be used in a UK airport and approved for use at Heathrow following an 18-month trial by BAA and the UK Border Agency” (‘Evening Standard’, 20 July 2011). Externally, “Cambridge UK design house Plextek has had its advanced Blighter radar technology adopted by BAA to enhance perimeter security. The complete airport perimeter surveillance solution includes long-range day and night cameras and a network of high definition cameras, capable of quickly identifying and tracking intruders detected by the Blighter radar” (‘Busi- ness Weekly’, 30 May 2012). With regards to Heathrow Airport’s overall security strategy, most of the required key aspects of security are fulfilled: Passport control and passenger screening prior to entering the departure area are highly stringent; the presence of both armed and unarmed police is a reassurance to passengers as much as it is a deterrent to would be terrorists; the security equipment currently in use is of leading quality and a result of significant investment; and perimeter security is able to identify potential launch sites for missile attacks. Indeed, not since the three-day debacle of IRA bombard- ments in 1994 has a successful attack been perpetrated at Heathrow. However, that is not to say that terrorism has been nullified as a danger. There continues to be an assumption that a terrorist’s main aim is to get on board a flight and then launch an attack. However, there is very little to stop a suicide bomberfromdetonatingadeviceanywhereintheairport prior to being searched at passport control. Within a group like Al-Qaeda’s modus operandi, this would fit perfectly with their stated aims (no-warning attack, killing innocent civilians, hitting an infrastructure target). This concept is not an alien one either, as was demon- strated in 2011 when “a Chechen militant detonated explosives in the international arrivals hall at Domodedo- vo Airport, 26 miles from Moscow city centre. 35 people died,includingatleast8foreignersand180wereinjured” (‘Metro’, 25 January 2011). This attack made front page news around the world, with strong coverage assured by the choice of target and the fact that civilians of many nationalities lost their lives. With Heathrow’s status as one of the busiest airports in the world, a carbon-copy attack would produce exactly the same result. Even the armed police presence would not guard against this sort of attack. This links into the idea of pre-emptive intelligence, with plots being shut down well beforethezerohour.However,thereisagaintheassump- tion that an attack on Heathrow will always be attempted by the sort of terrorist cells involved in the 2006 plot. In fact,itwouldseemthattherewouldbemoretofearfrom a ‘lone wolf’ attack on a target such as Heathrow. This leads into a major issue lacking from Heathrow’s security: profiling. The use of profiling, whether on the streets to reduce crime or in an airport to prevent terrorism, is a concept that is mired in controversy. Some minorities see it as a form of stereotyping. Others see it simply as an anathe- ma to the idea of civil liberties and of the individual being innocent until proven guilty. However, when used in the right way, profiling could represent a positive addition to the security apparatus at Heathrow. Terrorists may be able to use ingenuity to design devices that are easier to conceal and smuggle onto planes but they cannot mask basic human behaviour with guile. The Israeli national carrierEl-Alisaperfectexample.Theiruseofprofilinghas been a major success in countering terrorism. Some have criticised the fact that “its screening process is so time-consuming that passengers are required to arrive three hours before all flights and that passengers can be interrogated separately by three different screeners” (‘ABC News’, 1 October 2001), but one look at the airline's safety record demonstrates that it is largely a precision tool. With this in mind, it is heartening to see that future improvements in technology at Heathrow will include an element of profiling: “a three-channel passen- ger screening system will categorise people according to risk,thenseparatetheminto'enhanced','normal'andthe least risky, 'known traveller'. The new technology would rapidly screen passengers, depending on the channel theygothrough,tocoveradvancedX-ray,shoescanning, full-body screening, liquid detection and electronic sniffing for traces of explosives” (‘Daily Mail’, 5 September 2011). 7
  • 8. Heathrow:The EternalTarget BYjohn palser Another issue with Heathrow’s security is the lack of support from the major airlines. Indeed, who is ultimately accountable for the security of passengers? As the providers of airport facilities, should it be Heathrow? Or should it be up to the airlines, the companies who ultimatelytransportthepublic,toactastheguarantorsof safety? In many instances where pressure has been put on airlines to cooperate more closely with airport authori- ties or where technological improvements have been offered, the results have been less that positive. Prior to 9/11, when toughened baggage containers were being discussed, the response was decidedly negative: “Virgin Atlantic said: ‘we feel that first and foremost our and airport’s resources should be focused on preventing suspectpackagesbeingtakenonboardinthefirstplace’. Philip Baum, editor of Aviation Security magazine, said: ‘One hundred per cent screening of baggage does not mean one hundred percent of devices are detected. You are relying on human beings who are operating equip- ment’” (‘The Times’, 9 January 2001). The same was true whenthefeasibilityofmissilecounter-measuresonplanes wasdiscussed:“Regardingonboardanti-missilesystems, a British Airways source said: ‘We would never say never to this type of equipment but our view at the moment is thatitbelongsintherealmofhighlysophisticatedmilitary planes’. BA would have to spend half its £1.4 billion cash reserves to install the devices. A Department for Trans- port source said:”‘While feasible, the system would be expensive and would not protect against all types of missiles. The best protection is good intelligence and security around an airport perimeter” (‘The Times’, 29 November 2002). On the positive side, these examples demonstrate just why Heathrow has had to maintain its security: because of appalling pressure and a constant arbitration of responsibility by the airlines for passenger safety. The case needs to be stated more clearly that airlines have a duty of care to their customers. Ultimately, despite the utmost vigilance and best efforts of Heathrow officials, the airline is the last point of defence in stopping a plot from succeeding. In conclusion, the security measures in existence at Heathrow have been sufficient up to this point. Despite the post-9/11 upsurge in international terrorism, neither Heathrow nor the flights using it have been successfully attacked. However, terrorists are continually seeking to circumvent new security procedures. Heathrow cannot afford to stagnate and must be vigilant to new threats and parallel counter-measures, particularly in light of asymmetric warfare's continuing focus on the apparatus of civil aviation. HEATHROW IS A KEY COMPONENT OF THE UK'S CRITICAL NATIONAL INFRASTRUCTURE. (IMAGE © JOHN PALSER) 8
  • 9. Resilience can be viewed as an effort to develop protective measures which confront and reduce the that can impact on and disrupt everyday life. Resilience is a very ancient concept and can be found in Greek myths. It is also linked to psychoanalysis in connec- tion with the term ‘defence’, which is now defined as ‘active adaptability’ between risks and protective factors. In reality it is the lifestyle adopted by the farmers, shep- herds and woodcutters of previous generations when faced with natural hazards, unaware that it was what we would today refer to as resilience. But how can we move from the concept of Civil Protec- tionandDefencetothatofactivelyadaptingtoprevailing environmental conditions that make resilience prepara- tion a necessity? The outlook and perceptions of Italy’s Civil Protection planners do not help. In Italy only limited resources are allocated to preventative measures, where- as significant support is given to emergency response preparations. There are several factors that contribute to this situation. However, significant among these may be the fact that the Italian media often reports on emergencies with regard to the level of funding that has been allocated by local, regional or national politicians in order to mitigate the effects of the situation in question. It is likely that this, rather than the quiet and constant work of prevention thatnoonewillnoticeorappreciate,evenwhenthelatter proves successful, will bring the politician(s) in question more votes during subsequent elections. So the crux of the matter is the perception both of the risk and actions designed to prevent and mitigate it. This iswhythereisaneednotonlyforanewpolitics,butespe- cially a new awareness by citizens of their ‘habitat’, and the environmental risks that it faces. If we contemplate the seismic risk, in Italy only six percent of citizens live in homes that are adequately constructed. What about the others? They are often unaware of the risktotheirhome,buttheworstisthattheyfirmlybelieve that if an earthquake destroys their house, the Govern- ment will provide financial support for its reconstruction. It is essential to move away from relying too heavily on local government for the implementation of resilience measures. We have returned to the point at issue, namely that Civil Protection invests almost entirely in preparing for times of crisis in order to contain the effects of an incident or situation, instead of considering the environ- ment as the frame within which we must learn to live. In a country like Italy, where the risk of seismic events is widespread, there is a need to work day-by-day to limit the effects of any significant seismic event, just as the farmer takes care of their land to avoid spending more assets in order to recover from any damage that it might suffer. In effect, the economic resources invested for emergencyandreactivationeffortsaresignificantlygreat- er than those necessary to adapt to prevailing environ- mental risks and issues. Resilience :BacktothePast BY Luigi Castellani TESSINO TORRENT IN SPOLETO, UMBRIA (IMAGE © LUIGI CASTELLANI) TESSINO TORRENT IN SPOLETO, UMBRIA (IMAGE © LUIGI CASTELLANI) 9
  • 10. This is as true of preparations designed to mitigate the effects of flooding, as it is of measures which aim to limit the damage caused by seismic events. The territory in which we currently live is not ‘natural’, but formed by at least 35 centuries of steady human activity. Thisworkoffarmers,shepherdsandwoodcuttersstarted to disappear during the post-Second World War period. With it went the ‘know-how’, the historical memories and knowledge of how to adapt to environmental factors, which would previously have been handed on to future generations. At the same time city planning, an effort unworthy of this name, has only tried to appease the hunger for ‘modern’ houses, industrial areas and appropriate infrastructures forpopulationgrowthbybuildingnewcitieswhichdonot consider the integrity of the surrounding environment. During periods of rapid economic growth the safety of new towns was not taken into account. Also, the fact that the safety of these towns was dependent upon the care and maintenance of the surrounding land was not consid- ered. Without adequate flood prevention works, retain- ing structures and walls to channel rain water, together with a lack of ongoing forestry operations, neglected hills and mountains have started to subside and collapse. Furthermore,thereareriverbedsunabletocontainfloods and debris. We need to return to a direct and widespread manage- ment of vulnerable territory by all citizens, not only by farmers and woodcutters. In order to prevent flooding and maintain the integrity of land in at-risk areas, the same level of care needs to be taken as during historical periods of more widespread and intensive agricultural maintenance. Historically, ploughing was one of the hardest rural tasks. As a result of ploughing, the land dried by the summer sun was deeply turned over. This was fundamental to renew the land cycle, and was repeated at different times of the year. Moreover, additional grooves were dug to ensure the flow of rain water into canals and to prevent the destruction of crops and damage to agricultural land through flooding. This is the concept of being an ‘active citizen’, working day-by-day to adjust to any hazards posed by the local environment, perceiving risks and learning to adapt; not through practical efforts, but instead by being an active observer, with a conscience sufficient to consider the security and common good of the local community. If we consider the operational role of local communities, there is the need to reorganise the function of the agen- cies that support Civil Protection efforts (fire brigades, police forces, local authorities, emergency services, etc) closer to planning, situation control, the research and assessment of risk scenarios and especially to the dissem- ination of advice and guidance. However Civil Protection would have the basic role of coordinating rescues and resolving the relevant situation. Civil Protection would also have the task of issuing weather warnings and reports and inspecting improvements made to private properties as part of wider resilience efforts. This latter role could entail the issuing of certificates confirming that improvements to private properties are of a sufficient standard. Resilience: BacktothePast BYLuigiCastellani TESSINO TORRENT IN SPOLETO, UMBRIA (IMAGE © LUIGI CASTELLANI) 10
  • 11. Returning to the concept of territorial protection and resilience, how can we implement this idea in urban centres? Firstly, every citizen should directly supervise public works and infrastructure projects and secondly they should work to make their own home safe. The public could be persuaded to be active citizens through subsidies, tax breaks on real estate with an acceptable and certified level of safety and the related economic and commercial revaluation of the property, etc. So we can start talking about urban regeneration as resilience. This approach can be followed by bestowing funds and benefits to instill the concept that resources should be directed to ongoing efforts to ensure the safety of the citizens and not purely to the emergency response efforts. Since the first subject of sustainable urban regeneration must be the citizen, a civil and educational revolution would be needed to spread awareness of resilience and the importance of property, especially with regard to relatedtaxes.Therefore,thecitizenmustknowthatbuild- ings aren't everlasting and that the quality and safety of public spaces is a right. Clearly the use of official funds and / or benefits to strengthen private homes in order to increase the safety of properties to a sufficient standard, would involve assessments by technicians, engineers and local authori- ties in order to grant planning permission and ascertain if the planned work has met a minimum standard. This is the concept of being an ‘active citizen’, working day-by-day to adjust to any hazards posed by the local environment, perceiving risks and learning to adapt; not through practical efforts, but instead by being an active observer, with a conscience sufficient to consider the security and common good of the local community. If we consider the operational role of local communities, there is the need to reorganise the function of the agen- cies that support Civil Protection efforts (fire brigades, police forces, local authorities, emergency services, etc) closer to planning, situation control, the research and assessment of risk scenarios and especially to the dissem- ination of advice and guidance. However Civil Protection would have the basic role of coordinating rescues and resolving the relevant situation. Civil Protection would also have the task of issuing weather warnings and reports and inspecting improvements made to private properties as part of wider resilience efforts. This latter role could entail the issuing of certificates confirming that improvements to private properties are of a sufficient standard. The essential task of the citizen is to be aware and ensure their own safety, which will lead to an increased level of local resilience. Obviously, the awareness of being an active citizen has a meaning as long as we talk in terms of natural hazards. Itisquitedifferentifwetalkaboutindustrialriskinperiph- eral metropolitan areas or in strongly industrialised areas. In this case, Italian law already allows citizens to partici- pate in the initial planning of new buildings, whatever their end use is (infrastructures, residential districts, high-risk areas), and outline potential health and environ- mental concerns. In October 2013 the XXVIII Congress of the National Institute of Urban Planning took place in Salerno. One of the main areas covered by the Congress was the ‘Ri.U.- So.’(RigenerazioneUrbanaSostenibile)project,whichwill focus on urban regeneration as a form of resilience. Resilience: BacktothePast BYLuigiCastellani FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI) 11
  • 12. This Plan for Sustainable Urban Regeneration – which follows the example of the National Energy Plan, and which sets objectives and outlines the relevant political, regulatory and financial instruments, has the following aims : private buildings, reminding the Italian population that there are about 24 million people living in earth- quake-prone areas and about six million people in areas at risk of flooding; the issuing of certificates confirming that they have reached a minimum standard of construction and / or reinforcement in order to meet resilience challenges . To do this, the synergy between politics, technicians, businessandfinanceisn’tenoughbut,asreiterated,there is a need for citizens to be aware of their local resilience needs and duties. The basic theory is that the future of our cities depends upon our ability, including as individuals, to facilitate their adjustment to the great current transformations. These include climate change, environmental, economic and social crises and also a finite amount of urban space. The citizen must understand that they are primarily responsi- ble for their own security because without individual resilience there cannot be a collective resilience. Resilience: BacktothePast BYLuigiCastellani FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI) FIELDS IN TREVI, UMBRIA. (IMAGE © LUIGI CASTELLANI) 12
  • 13. Thestand-offendedon20Januarywhen,aftermediation by the EU, Gazprom and Naftogaz signed a new purchase agreement, and gas flowed through Ukraine once again. But such a crisis may happen again. On 21 November, 2013, Ukrainian President Viktor Yanukovych, under pressure from Russian President Vladimir Putin, decided against signing a free-trade agreement with the EU. Putin had pressured Yanukovych in part by threatening higher gas prices and limited supplies. The Ukrainian people took to the streets in numbers not seen since the Orange Revolution of 2004, amajorprotestagainsttheelectionofViktorYanukovych. The gas stoppage of 2009 should serve as a stark reminder of what Russia is capable of, and suggest policies and practices to help mitigate the effects of another potential gas stoppage. On 1 January 2009 the Russian state gas company, withdrawing20%oftheEuropeanUnion’s(EU)supply. Gazprom was embroiled in a pricing dispute with Naftogaz of Ukraine, which provides the largest gas transit route to the Balkans, Central Europe, and West- ern Europe. 80% of Russian gas exports to the EU passed through Ukraine at the time of the January 2009 disruption. By 2 January,Bulgaria,Hungary,Poland,RomaniaandSlovakia had already experienced shortages. By 7 January all Russian gas exports to the EU had stopped. Nations scrambled to enact emergency plans as temperatures dropped. The hardest hit region was South-Eastern Europe, where gas dependency on Gazprom could amount to 100%, and where the global economic down- turn had undermined an already vulnerable energy sector. Some 700,000 apartments in Sarajevo, for exam- ple, lost heating, as suburban consumers turned to alter- native fuels like wood, or found refuge with relatives and friends elsewhere. In Bulgaria, Greece, Moldova, Serbia and other regional nations,storedgas,fueloil,hydroelectricpower,liquefied natural gas (LNG), or emergency help from across borders all lessened the severity of the shortfall from Russia. Critical factors included water level and tempera- ture—that it remained above freezing helped to avoid a humanitarian disaster, and freed water for for hydroelec- tric power—availability and cost of wood for household heating, availability and cost of fuel oil for utilities that could switch from gas, transport infrastructure for the distributionoffueloil,reverseflowcapabilityfortheredis- tribution of gas supplies and energy agreements with neighbouringcountries. Meanwhile, Central andWestern European nations like Belgium, Germany and Italy, which have more diverse natural gas supplies, including LNG terminals, substantial domestic gas production and storage, and better overall energy resilience, adjusted easily to the Ukraine incident. EnergyResilience: Russia,Ukraine, and theProspect ofanother GasWar BY WARREN DYM A Continuing Threat It is important to stress that Europe is not on the whole dependent on Russian gas. Two nations—Germany and Italy—together account for about 50% of the EU’s dependency. Europe has achieved remarkable energy diversification since the 1980s. The share of Russian gas imports within the EU’s overall gas consumption has declined from 30% in the early 1990s to 25% today, although the share of European imports more broadly (including non-EU nations) is higher. Advanced economies like Germany procure natural gas from Algeria, Nigeria, Norway and the Middle East, and can expect LNG from the United States in the near future, and possibly domestic produc- tion from shale. The share of total energy that imported gas provides (alongside domestic gas, coal, nuclear, hydropower, and renewables) may be relatively small for these countries, and may serve industry more than households. Nevertheless, Putin’s ability to use gas as a political bargaining chip in Russia’s near-abroad has improved since 2009. In December 2011, Gazprom acquired the remaining stake in Belarus’s gas transport company, Beltransgaz, which the Russian company did not already own. 13
  • 14. Russian companies had curtailed oil and gas supplies to Belarus in 2010 and 2011 over contract and pricing disputes. In 2010, Putin negotiated with Ukraine for an extension of Russia’s naval presence at Sevastopol on the Black Sea to 2042 by granting a ten-year discount on natural gas. Russia also offers cheap gas and debt relief to woo UkraineintoacustomsunionthatprivilegesRussianinter- ests, and eventually into a Eurasian economic union. Moldova is facing a similar choice. Russia opposes EU efforts toward energy market liberalisation and integra- tion, including an Energy Community Treaty (ECT) for non-EU South-Eastern states like Moldova and Serbia. Russia’s counter-deal is familiar: renounce EU-oriented market reforms and enjoy price cuts on gas, together with debt relief. A Kremlin envoy explicitly mentioned the prospect of gas cuts to Moldova, as Russia banned Moldovan wine over supposed health concerns. Other gas dependent nations pay strikingly high prices, likeLithuania,whichformallycomplainedtotheEuropean Commission. A formal investigation of Gazprom’s dealings in Europe is now ongoing. In neighbouring Latvia, Russian energy concerns so dominate the political culture that one might speak of the ‘Gazpromization’ of politics there. Part of Russia’s energy strategy involves maintaining constructive relationships with rich European countries. Long-term bilateral contracts undermine efforts toward an integrated European energy market and infrastructure, and weaken the bargaining power of more dependent nations in Russia’s near-abroad. Long-term energy security for France, Germany and Italy makes them less vulnerable to insecurities elsewhere and less interested in integration. Gazprom recently consented to restructuring gas contracts with select European customers to reflect the spot price of gas, rather than fixed global oil prices, as customary. This serves Gazprom’s richer customers and, again, reduces the attractiveness for them of market integration. The Baltic States and Poland have been highly critical of these bilateral arrangements. One might also recall the challenges facing economic integration: Eurozone leader Germany, already facing widespread opposition to austerity measures EnergyResilience : Russia,Ukraine,andtheProspectofanotherGasWar BYWARRENDYM imposed on economically weaker members like Greece and Spain, and enjoying relatively secure energy relations with Russia, might avoid similarly tying its energy security to the EU. Russia’s pipelines to Europe themselves have strategic significance. The Nord Stream line that began serving Germany directly from Western Siberia under the Baltic Sea in 2011 reduces the risk that Europe’s economic heartland will be adversely affected by another crisis in Russia’s near-abroad. This only makes using gas as a bargaining chip there more attractive to Russia. The Yamal-Europe pipeline that opened in the 1990s did not secure Europe as reliably as Nord Stream does since Yamal runs through Belarus, and pricing disputes flared between Gazprom and Beltransgaz before the Russian company completed its acquisition of the latter. Nord Stream also deliberately bypasses the Exclusive Economic Zones (EEZs) of Poland and the Baltic States, leaving them more dependent on the Yamal line. Poland is considering developing its domestic unconven- tional resources in part for these reasons. Finally, Russia’s proposed South Stream pipeline under the Black Sea would bring Russian gas to Central Europe via Italy, but it would cross Turkey’s EEZ, not Ukraine’s, thereby isolating Russia’s near abroad once again. RUSSIAN GAS PIPELINES TO THE WEST BYPASS EASTERN EUROPE. THE NOW DEFUNCT NABUCCO WAS A WESTERN-BACKED ALTERNATIVE. (IMAGE ©F. WILLIAM ENGDAHL) 14
  • 15. EnergyResilience : Russia,Ukraine,andtheProspectofanotherGasWar BYWARRENDYM PERCENT OF MISSING GAS SUPPLY BETWEEN 6 TO 20 JANUARY, 2009. RED = 75%, ORANGE = 50-75%, PINK = 25-50%, YELLOW = UNDER 25% (IMAGE ©EUROPA.EU) (EU, ECT, INOGATE and the International Energy Agency, or IEA) with richer countries, not to mention with Russia.TheEUhasanumberofenergysecurityinitiatives, including the Gas Security of Supply Directive and Gas Coordination Group, and an Early Warning Mechanism agreement with Russia. Energy resilience can therefore vary markedly. Responses to the January 2009 crisis, while they reveal some common concerns, illustrate distinctive strengths and challenges. For example, EU member Bulgaria had no LNG import terminal and limited domestic gas production. It imported almost all of its natural gas from Gazprom, much of it via Ukraine. Experiencing supply shortages as early as 2 January, the Bulgarian Govern- ment ordered major industrial consumers, especially two fertiliser companies, to close, as the national gas compa- ny negotiated for additional supply from offshore fields worked by a British company and increased imports from Greece. All export of alternative fuels, namely fuel oil, was stopped, and a nuclear plant (closed to meet EU mandates) was reopened. Substantial reserves were withdrawn from the national underground gas storage (UGS) facility at Chiren. Coal plants were put on line, including one lignite plant that had also failed to meet EU environmental standards and been closed. The largest oil refinery at Burgas, which is owned—not incidentally—by the Russian company, LukOil, possessed substantial fuel oil for utility companies capable of TheWestern-backedTrans-AnatolianPipeline(TANAP)to bring Azeri gas toward Italy will compete with South Stream. Some argue that Russia seeks to influence Azer- baijan’s dealings with the West by offering attractive energy contracts and arms deals. Russian energy giants frequently own majority shares in Eastern Europe’s energy infrastructure. Once again, Gazprom acquired Beltransgaz of Belarus, including storage units and transit lines, after years of dispute. Ukraine’s struggle to retain independent control of its energy sector is one factor behind its quarrels with Gazprom. But turning to the Balkans, we find more over- whelming Russian control. Serbia’s ‘Security of Supply Statement’ of August, 2009, did not so much as mention the stand-off with Ukraine thatoccurredjustmonthspreviouslyandthathadamajor impact on the Balkan nation. The statement merely cited SouthStreamasSerbia’shedgeagainstenergyinsecurity. Gazprom Neft runs Serbia’s oil industry and refineries, which means that in the event of a low level of gas supply from Gazprom, the sister company stands to win additional fuel oil sales to utilities—an obvious conflict of interest. Construction of South Stream recently began in Serbia, although Belgrade claimed in 2009 that “deliveries [were] to start in 2013.” Emergency Planning Eastern European nations possess unique energy portfolios, infrastructures, geological and demographic conditions, and membership or treaty obligations 15
  • 16. EnergyResilience : Russia,Ukraine,andtheProspectofanotherGasWar BYWARRENDYM According to the Energy Act (and largely in line with IEA membership prerequisites) all suppliers of energy within thecountryarerequiredtomaintainasupplystandardfor 30 days in the event of major weather events or supply disruptions. Companiesareexpectedtodrawfromstorage,domestic sources, or reach across borders. Slovakia’s national gas supply company, Slovenský Plynárenský Priemysel (SPP), which translates as ‘Slovak Gas Industry’, penned agree- ments with E.ON Ruhrgas of Germany and GDF Suez of France in order to diversify its import portfolio. Special regional centres are charged with announcing energy emergencies and managing the response. Transmission, distributionandstoragecompaniesarerequiredtofollow the centres’ directives. They include specific restrictions or cut-offs to different end users according to severity level ratings (i.e., household heating is a top priority). Otherwise, Slovakia’s utilities did not have a widespread ability to switch from gas to fuel oil, as in Bulgaria. Today, Slovakia depends on Russia for 63% of its natural gas, amounting to 20% of its overall energy portfolio, but the energy resilience of this EU and IEA member is relatively sound. Policy Recommendations Today, Slovakia depends on Russia for 63% of its natural gas, amounting to 20% of its overall energy portfolio, but the energy resilience of this EU and IEA member is relatively sound. The gas war between Russia and Ukraine in 2009 could have been much worse. Temperatures could have plum- metedfurther,thestoppagecouldhavebeenplannedfor a non-holiday period (when demand would have been higher), and it could have lasted longer than 19 days. All European nations, but especially Eastern European ones from the Baltic to the Balkans, should study the events of 2009 in order to develop better emergency plans. This brief overview would suggest the following policy recommendations: (continued on next page) switching from gas, but logistics and infrastructure prob- lems prevented distribution across the country. So while Russian gas accounts for 13.6% of Bulgaria’s total energy consumption today, overall dependency on Russia is much higher when one factors in oil. Bulgaria still lacks an LNG terminal on the Black Sea coast, but it is boosting domestic gas production and, like Serbia, expecting Russia’s South Stream. Similarly, Russian energy giants enjoy overwhelming control over Serbia’s oil and gas industry and infrastruc- ture. Here too limited stocks of fuel oil proved impossible to distribute to utilities swiftly in January 2009, due to infrastructure and logistics challenges. But unlike Bulgar- ia, Serbia possesses no adequate domestic UGS. Belgrade district added a new boiler to serve that critical city, but the emergency import of 25,000 tons of fuel oil from Bosnia proved more decisive. The Serbian Govern- ment also arranged electricity imports from Hungary’s Magyar Olaj (MOL) and Germany’s E.ON. Such cross-border arrangements and additional reverse flow capabilities will prove critical for Serbia looking ahead and the national ‘Security of Supply Statement’ calls for a host of new interconnections. Otherwise, there was no official discussion of overdependence on Russia forgasandoilafterthecrisisin2009,andSerbia’sNation- al Anti-Monopoly Commission claimed that the issue fell beyond its mandate. The national (or rather, Russian) plan for Serbia remains, like Bulgaria, to wait for the South Stream pipeline. Serbia’s relative complacency in energy security planning after the 2009 crisis stands in marked contrast to the Slovak Republic. In line with EU requirements toward liberalisation Slovakia ‘unbundled’ its import, transmis- sion, and distribution industries in 2006, so that one company cannotcontrolenergyflows fromproductionto end users. Nevertheless, natural gas accounted for 27% of Slovakia’s total energy consumption in 2009, and the bulk came from Russia in accordance with a 20-year contract with Gazprom; and Slovakia was a transit nation for some 20% of the EU’s total natural gas, much of it from Ukraine. Therefore, after the crisis Slovakia invested heavily in infrastructure to improve the movement of gas from storage to consumers, and beefed up reverse flow capability from the Czech Republic. 16
  • 17. EnergyResilience : Russia,Ukraine,andtheProspectofanotherGasWar BYWARRENDYM and distribution plan. - tion and distribution plan. fuel oil, gasoil, or coal, depending on what is most available. to emissions restrictions. nationsshouldinvestininterconnectionsandreverseflow capabilities to improve the strategic movement of supplies during emergencies. energy security. priority to vulnerable households are essential. BOOK REVIEW: Cybersecurity and Cyberwar: What Everyone Needs to Know byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014 The truly comprehensive scope of this excellent book with regard to current and emerging cyber security issues, puts a complete breakdown of its contents beyond the reach of this review. This in itself demonstrates the extent to which this book represents an in-depth attempt to understand as completely as possible the present cyber threat picture, and the measures which have been and could be utilised to ensure cyber security. The wide-ranging approach taken by the authors of this work allows them to discuss cyber security issues from the perspective of states, sub-state groups, the business community, and also how these interact with each other in cyberspace. Aside from the highly informative content of this book, and the authors’ excellent use of evidence to support arguments and introduce different perspectives, the book itself is writteninawaythatengagesthereader,andmakeswhat some may view as a ‘dry’ subject genuinely interesting. The first main section of Cybersecurity and Cyberwar: What Everyone Needs to Know, titled ‘How It All Works’, itverywell-structuredandeasilyaccessible.Containingas it does an explanation of how the Internet functions at a basic level, this section provides all those who use the Internet,butwhomaynotunderstanditsstructure,witha solid introduction that is vital to comprehending much of what follows later in the book. Highlights from this first section are many and varied. When explaining how the Internet operates, it puts forward a simple yet concise and informative guide to 17
  • 18. BOOK REVIEW: Cybersecurity and Cyberwar: What Everyone Needs to Know byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014 how its Domain Name System functions. This section also introduces the reader to major issues such as Internet governance, the authentication of individuals’ identity online and, crucially, the main threats that exist in cyber- space. The cyber security issues raised in this first section of the book include Advanced Persistent Threats, which are rapidly becoming a major concern within cyber security circles. The Wikileaks ‘Cablegate’ case is also well-covered with regard to the role that unauthorised disclosures can play in undermining cyber, organisational and national security. The book’s first section emphasises that the human factor is often overlooked with regard to cybersecurity.Thisapproachstrengthensthevalueofthe book as a guide to cyber security as it recognises that cyber security as a concept rests as much on individuals as on the technology at their disposal. The second section of the book, ‘Why It Matters’, contin- ues the authors’ excellent use of examples to introduce and explain the main issues surrounding cyber security. For instance, Singer and Friedman highlight the fact that different nation states have varying beliefs regarding what constitutes cyber security, and the need for a free flow of information via the Internet. The book points out that whilst politicians in the United States argue that access to international online news sources and social networks is a human right, countries such as China and Russia view the same free flow of information as an attempt to undermine the stability of the state, rather than a basic human right. By using this simple but powerful example, Singer and Friedman clearly demonstrate the inherent difficulty in defining cyber security as a concept at the international level, as different states can have conflicting beliefs regarding exactly what constitutes a cyber threat. This section of the book also tackles the vital issue of attribu- tion with regard to cyber attacks and how hackers can remotely take control of computers and then use these machines to carry out cyber attacks. Although the authors of this book often focus primarily on technology, they never lose sight of how cyber securi- ty concerns could damage relations between states, For example, with regard to the issue of attribution, Singer and Friedman argue that mutual suspicions concerning cyber security have increasingly “poisoned” US-Chinese relations. The authors then concede that, since many in the US assume that the Chinese state has a high level of control over its citizens, then it is logical to argue that most “insidious activities” launched using computers based in China were carried out with at least some knowledge on the part of the Chinese Government. However, it is then pointed out that this viewpoint, especially prevalent in the US, may persuade potentialhackerstoremotelycaptureandusecomputers in China in order to avoid detection, although it is further argued that this in itself may allow the Chinese Government to attempt to deny any cyber attacks that it hasitselfcarriedout. Thefactthatthisexampleisgivenin a single paragraph demonstrates the ability of the authors of this work to concisely analyse a given issue in suchawaythatgivesthereaderagoodunderstandingof what is at stake. ‘Why It Matters’ also contains a solid introduction to the issue of ‘hacktivism’ as a concept, together with an over- view of who carries it out and why. The section includes a comprehensive yet concise analysis of ‘Anonymous’, including how it emerged, its modus operandi and what its motivations are. Whilst many assessments of hacktiv- ism focus purely on its repercussions in cyberspace, Singer and Friedman also explore how such activity can lead to confrontation and potentially even fatalities in the non-cyber world. The authors cite a 2011 US Army War College report which recounts how Los Zetas, a drug cartelcomposedofformerMexicanArmypersonnel,was targeted by Anonymous after its kidnapping of one of the latter’s members. Following a statement by Anony- mous that it would post confidential information regard- ing Los Zetas online if its member was not released, the cartel hired experts to help it ‘reverse hack’ Anonymous, uncover personal details of some of its members, and threaten them with assassination. In citing this example, the authors of this book are addressing the potential real-world impact of hacktivism, something not always done by writers on cyber security, especially when examining interaction between sub-state actors. 18
  • 19. BOOK REVIEW: Cybersecurity and Cyberwar: What Everyone Needs to Know byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014 This middle section of Cybersecurity and Cyberwar: What Everyone Needs to Know includes a straightfor- ward yet informative introduction to the various types of cybercrime, which is both clear and easily understand- able. Even for those of us who consider ourselves to be ‘cyber-savvy’, such a guide to potential online crimes should be and is most welcome. Cyber espionage is also covered in this section, with the example of ‘Operation Shady RAT’, which successfully penetrated 72 major targets across the globe, being used to demonstrate boththescaleofcyberespionageandtherangeofactors that might be targeted. Theauthorsofthebookalsoadoptamorebalancedview of the potential threat posed by cyber terrorism than some sections of the media. Singer and Friedman argue that whilst the threat of cyber terrorism in genuine, it perhaps poses less of a challenge than the media has previously reported. However, the authors do provide a detailed overview of how terrorist organisations use the Internet, especially with regard to spreading propaganda and recruiting new members. Also, the fact that a Taliban propaganda website was hosted by a server based in the US is used to demonstrate the ease with which terrorist groups are able to use the Internet because of its “virtual anonymity”. Aside from specific cyber threats, the book’s authors also discuss the Internet in relation to issues of foreign policy and human rights, and especially the need to balance security with the online freedom of expression. Singer and Friedman excellently demonstrate, using appropri- ate evidence, that online freedoms are shaped at a coun- try level by national cultures and histories, and not simply by the type of government, i.e. democratic or authoritari- an, that a nation state might have. One example that is used is the fact that whilst the UK and Thailand are both monarchies, it is illegal in the latter to defame the monarch. This book correctly points out that such differences can present obstacles to the creation of international definitions of what level of free speech is permissible online. Furthermore, this section also contains an informative overview of the Tor network, and the potential problems posed by it, especially with regard to criminal activity, such as the ‘Silk Road’ black market website. Crucially, the grey area of ‘patriotic hackers’ is also covered by this section of the book. An analysis of this emerging element of the cyber security landscape is most welcome as it demonstrates that individuals, non-state groups and national governments interact within the cyber realm. Singer and Friedman use the example of the ‘Estonian Cyberwar’ of 2007, during which members of Nashi, a pro-Putin Russian youth movement, carried out cyber attacks against Estonia following the relocation of a Russian war memorial in Tallin. It is vital that this facet of the cyber security landscape is better understood, as the use of patriotic hackerscanallowgovernmentstocarryoutcyber attacks against rival states whilst being able to credibly deny that such an operation was officially sanctioned, thus compli- cating any potential response by the target state. The authors of this book also consider other recent and emerging cyber threats such as the Stuxnet computer worm and its successors, together with the ethical issues that the use of such weapons raises, how these weapons function and what damage they can cause. When consid- ering Stuxnet and similar cyber weapons, the greatest service that this book provides is to clearly and accurately argue that such weapons represent a ‘game changer’ with regard to cyber security. The issue of how military alliancessuchasNATO,originallycreatedtofightconven- tional, i.e. non-cyber wars, and which relies upon the concept of collective security, should react when one of its members is targeted by a cyber attack is also consid- ered. A balanced assessment of this issue by those concerned is essential if NATO is to remain relevant, and this book can therefore only help to spur on such an appraisal. ThiscentralsectionofCybersecurityandCyberwar:What Everyone Needs to Know also contains a very interesting overview of US Cyber Command and of the Chinese approach to cyber warfare. 19
  • 20. BOOK REVIEW: Cybersecurity and Cyberwar: What Everyone Needs to Know byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014 This overview concludes with the proposal that the two sides are fairly evenly matched, having both similar capa- bilities and similar vulnerabilities. The connected issue of how states can deter cyber attacks on each other when attributing the origin of cyber attacks to a particular state or other actor is still problematic is also considered. As already noted, one of the main strengths of this book is the evidence used by its authors to support their conclusions. When examining whether cyber warfare favours the weak or the strong, Singer and Friedman note that in 2009, US troops in Iraq discovered that insur- gents had used a cheap, commercially-available comput- er programme called ‘Skygrabber’ to hack into US surveillance drones and monitor their movements. This example, which clearly demonstrates the potentially ‘levelling’ effect that cyber attacks can have during a conflict between two otherwise asymmetrically-matched opponents, has been well chosen by the book’s authors. Despite the reality of cyber threats, Singer and Friedman do an excellent job in maintaining a balanced outlook whilst also making the reader aware of genuine concerns. They stress that weaker states and non-state groups mostlikelydonothavetheresourcesneededtocarryout significant cyber attacks. However, they do concede that malware can be developed and deployed by a small group of experts, from the sub-state group level down to the level of the individual. They conclude that in this new “cyber arms race” multiple experts will more often than not be needed in order to successfully carry out cyber attacks, and that the idea of cyber attacks being carried out by a “single teenaged hacker in his parents’ base- ment” is often far from the truth. The third and final main section of the book, ‘What Can We Do?’ arguably takes a much wider look at cyber secu- rity. However, this does not mean that the section lacks the insight, accuracy or engaging style of the two previ- ous chapters. The first main point that this section makes is that different types of resilience are needed in order to combat cyber security threats. Whereas cyber resilience planning to meet traditional threats, such as extreme weather events, relies primarily on redundancy capabili- ties which can be engaged in the event that parts of a network are rendered inoperable, security against malicious cyber threats has to consider attackers who know what parts of a network to target, potentially including back-up systems. Furthermore, Singer and Friedman again correctly stress the human factor in cyber security and resilience, and how such efforts often hinge ontheknowledge,professionalismanddiligenceofthose individuals charged with implementing them. The use by the authors of this book of non-cyber exam- ples to engage with the reader and explain how cyber securityeffortscouldbeimplementedisprominentinthis chapter. For instance, Singer and Friedman use the work of the US Center for Disease Control to explain how computer viruses and malware may be combated in the cyber world. Also, the authors use the example of how maritime piracy was successfully confronted by nation states during the so-called “Golden Age of Piracy”. They argue that maritime piracy was successfully countered through confronting the established markets, havens and criminalstructuresthatallowedittoflourishandgenerate a profit for its perpetrators. Singer and Friedman propose that there are modern cyber equivalents of these factors, such as online black market trading websites and companies that tolerate malware, allow cyber crime to flourish in a similar manner to maritime piracy during its “Golden Age”. It is proposed that if such havens were removed, then committing criminal or malicious acts in cyberspace would become more difficult. By using the “Golden Age of Piracy” as a metaphor with which to engage with the reader, Singer and Friedman have chosen well, as this is a subject that has long been prevalent in popular culture. Aside from the role of organisations such as the Interna- tional Telecommunications Union, this final section of the book also points out that, despite claims that due to its transnational nature, the Internet is beyond the reach of national governments, the systems that form the Internet are located within nation states. This is a vital point, as it demonstrates, contrary to what some believe, that governments are still able to significantly influence the operation of the Internet through the laws of individual nation states. 20
  • 21. BOOK REVIEW: Cybersecurity and Cyberwar: What Everyone Needs to Know byP.W. Singer andAllanFriedman,OxfordUniversityPress,2014 To borrow a phrase from the text, “...there is no non-sov- ereign, ‘free’ part of cyberspace”. This final chapter of the book also offers an interesting perspective on cyber securityexercises.Theauthorsarguethat,despitemutual suspicion, joint US-Chinese cyber security exercises have the potential to reduce tensions between the two coun- tries regarding activity in cyberspace. This viewpoint does not seem to have been widely reported or discussed in the media, meaning that this concept may be fresh and new to many readers. In short, this book is a genuine must-read for anyone interested in cyber security issues, regardless of their background or level of expertise. Singer and Friedman present a lucid, concise and highly informative break- down of current cyber security matters and their implica- tions at the global, state, corporate and individual levels. Aside from the highly informative arguments and evidence featured in this book, the style in which it is written allows it to appeal to both experts and newcom- ers to the subject of cyber security. We can say no more than this book is essential reading in the modern world. 21 We don't just Analyse, we are Operational. Courses include: Close Protection HECPO / PSD Tactical Firearms Surveillance / Counter-Surveillance Theatre & Operational Readiness Operational Medical / FPOS Tactical Driving Intelligence Management & Analysis Risk Management Military Skill-sets (by request & enquiry) **ALL SIA COURSES** Whatever your needs, Tell us what they are, we are here to help. bespoke service comprising of operationally skilled instructors from a vast database, so you can develop the relevant, professional, skill-sets you need. For more information & any queries please contact : jamesmac@sirsconsultancy.org.uk More information will be available on this service for companies and the public from : www.sirsconsultancy.org.uk
  • 22.
  • 23. Who turned out the lights? 14 August, 2003: a major failure of the electrical grid led to what became known as the 'Northeast Blackout', during which most of the North-Eastern United States (US) and Canada were plunged into darkness. Over fifty million people were left without power. Airports, railroads, oil refineries and factories had to close. Also, utilities such as gas and water did not have the pressure capacity to provide any services, resulting in inoperative petrol stations and putting the water supply at risk of contamination.Furthermore,wheregeneratorsranoutof fuel, cellular communications were disrupted or taken down entirely. There was mass panic as well as reports of looting and violence, and emergency services could not respond in the face of such demand - that's if the calls got through. The Anderson Economic Group places the total economic loss for the United States at a mid-point estimate of $6.4 billion. The entire ordeal lasted barely two days. Two weeks later, the same thing happened in London, albeit on a much smaller scale. A failure in the National Griddisrupted60%oftheLondonUndergroundnetwork at the peak of the rush-hour. 1,800 trains and 250,000 “WHATDOESN’T KILLYOU” CyberResilience andThreat BY Marika N. Josephides people were affected. This power failure lasted around forty minutes. Both of these cases prompted extensive inquiries and investigations. Theclose timing of the black- outs understandably raised questions of possible malicious intent, and the prospect that they had been terrorist attacks was not ruled out. It was eventually determined that in both cases the fault lay in a mixture of human error and faulty equipment. One of the trigger culprits in the Northeast Blackout, as the media enjoyed pointing out at the time, was an intrepid tree. Whatever the reasons for the blackouts, the results of the relevant factors would lead anyone to ponder on the fragility of modern civilisation and the interconnectedness of its critical infrastructure. What prompted the Northeast and London blackouts were innocent mistakes. The Cyber Threat Picture Today Innocent mistakes such as the above examples, however, do not preclude the possibility that malicious cyber-at- tacks by state and sub-state actors could achieve the same results. A blackout of sustained duration - even if it were restricted to one branch of infrastructure - could assist or supplement a military or physical attack. TorontoduringtheNortheastBlackoutof2003.Source: Camerafiend;obtainedviaWikipedia. 23
  • 24. Over ten years on from the Northeast and London black- outs of 2003, we have seen this concept of a combined strike implemented during Operation 'Orchard', carried out in 2007. During this operation, Syria's sophisticated air defence system was blinded, allowing the Israeli Air Force to execute an attack on a nascent undeclared nuclear reactor site. The cyber element was integral to the operation as a whole. This is an illustration of former Director of the CIA (2009-2011) and US Secretary of Defence (2011-2013) Leon Panetta's much quoted "cyber Pearl Harbor" scenario. Similarly, the oft-chroni- cled Stuxnet worm which took down yet another nuclear site in Natanz, Iran, put Advanced Persistent Threats (APTs) firmly on the cyber security map. This is not to say that malicious cyber activity has to be military in nature. It has recently been revealed that Finland's Ministry of Foreign Affairs (MFA) experienced cyber infiltration into systems with external connections. It has been confirmed that no sensitive internal data was compromised, but some diplomatic communications may have been extracted. The attack was an APT that had been in the relevant system for up to four years, and there is no lack of skill in MFA cyber security. This highlights the nature of cyber-espionage in general - stealthy, often undetectable, and impossible when it comes to attribution. It is sufficient that only a small vulnerability in the system is exploited. Yet another cyber security threat is exemplified by the theft of £1.3 million from Barclays Bank in April 2013. In this successful case of cyber theft, all it took was a small, organised criminal network to send a man into a London branch of Barclays under the pretence of being an IT contractor. He attached a 'keyboard video mouse' switch with a 3G router to one of the computers. The criminal organisation could then remotely transfer funds to bank accounts at their leisure. Fortunately, the group was rounded up and the funds were restored. And of course, one cannot speak of cases of cyber theft without men- tioning the huge breach of the Sony PlayStation Network in 2011, in which about 100 million user accounts were compromised, causing concern regarding identity fraud, which one cannot trace. The possible expenses to Sony from the data theft were estimated at $171 million, but no money was actually stolen in the breach. The informa- tion heist was perpetrated by a 19-year-old hacker living in his parents' house, and was done 'for the lulz'. “WHATDOESN’TKILLYOU” Cyber ResilienceandThreat BY MARIKAN.JOSEPHIDES All of the above cases, and many more far too numerous to outline here, underscore the scope of the cyber threat inawidevarietyofsectors,byanynumberofactors,from a large number of attack vectors and for numerous reasons. Though cyberspace and all its stakeholders are global, it is helpful to examine the issue further from the perspec- tive of a developed country with a cyber strategy of its own – the United Kingdom (UK). This way we can come to an assessment of mitigation, prevention and policy against a worse-case scenario in a country that publicly aims to be as prepared as possible. The Internet alone accounts for 6% of UK GDP. This does not include transactions that are facilitated by or are a by-product of the Internet through advertising. The Inter- net has enabled 21% of GDP growth across developed countries during the period 2005-2010. If the Internet were a consolidated 'sector' it would dwarf both utilities and agriculture. Critical infrastructure and related processes are almost entirely managed by forms of SCADA ('Supervisory Control and Data Acquisition') technology. They are controlled remotely by computers and communications networks. These processes include oil and gas pipelines, water distribution, the electrical grid and railway opera- tions and signalling. A 2011 report by McAfee, an Ameri- can-based computer security software company, found that nearly two-thirds of critical infrastructure companies, publicandprivate,statedthattheyregularlyfindmalware with the potential to sabotage their systems. Evidently, attacks that aim to cause levels of disruption comparable to the Northeast Blackout - be it with a Deni- al-of-Service (DOS) or an APT attack, or something else- are not beyond the pale of attacker ambition or possibility. Cyber resilience has therefore become a priority. Bouncing Back: Cyber Resilience The World Economic Forum defines cyber resilience as "the ability of systems and organisations to withstand cyber events, measured by the combination of mean time to failure and mean time of recovery." This breaks down to two factors: prevention and mitigation. If this seems like a defensive reactive concept, it is. 24
  • 25. It evokes past US Secretary of Defence (under Gerald Ford 1975-1977 and George W. Bush 2001-2006) Donald Rumsfeld's 'unknown unknowns' - but the blurring of online boundaries makes it so. The interconnectivity between individuals, organisations and the state inher- ently increases the risk of unpredictable shocks to the entire system, and this is exacerbated by the advent of cloud computing. Prevention and mitigation with a clear emphasis on the human element would therefore be a realistic and effective focus. This is the policy approach taken by the UK. The National Security Strategy places "hostile attacks upon UK cyber- space by other states and large scale cyber crime" as a Tier One threat - putting it at the highest priority level - stressing "risk and resilience" in the face of "new systems of influence." It is consonant with the UK Cyber Security Strategy (UKCSS), the second objective of which is to make the UK "more resilient to cyber attack and better able to protect our interests in cyberspace." It makes the point that all networked systems are potentially vulnera- ble and that these vulnerabilities can appear anywhere withintheinformationlifecycle.Theappropriateresponse is thus determined to be one utilising risk-based measures. UKCSS adopts a holistic approach that aims to establish compliance norms, support and coordinate with businesseslargeorsmallinrelationtoboththepublicand the private sector, and inform the public as to how to stay safe online. The UK Government put in place a £650 million, four-year National Cyber Security Programme (NCSP) in order to facilitate this. The Office of Cyber Security and the UK Cyber Security Operations Centre (CSOC) were opened to improve detection of cyber security threats. The most capital-intensive initiative of the NCSP was funding to the UK intelligence community in aggregate, constituting £157 million of NCSP money - see breakdown (see Figure 1). The Centre for the Protec- tion of National Infrastructure (CPNI) intensified its approach and coordination against threats from cyber- space. The National Cyber Crime Unit (NCCU) was also conceived to operate as part of the National Crime Agency(NCA).Itistooearlytocommentonthisdevelop- mentasthelatterorganisationissonew,buttheNCCUis intended to provide a co-ordinated national response to cybercrime. “WHATDOESN’TKILLYOU” Cyber ResilienceandThreat BY MARIKAN.JOSEPHIDES This could also be seen as a shift of intent as well as capability - the NCA has executive powers, which include the power of arrest. To reiterate, huge emphasis has been put on public-pri- vate partnerships and industry-led standards. The Department of Business, Innovation and Skills is one of the major Government leads in the UKCSS. This is due to thevulnerabilityofbusinesses,forwhichtheprofitmotive sometimes interferes with choices in cyber security. Small andmediumenterprisesinparticulararevulnerableinthis respect. In 2012, 60% of those surveyed had suffered a malware attack. A 2012 PricewaterhouseCoopers survey found that 93% of large corporations and 76% of small businesses had experienced a cyber security breach that year. And of course, the UK’s system of quasi-privatisa- tion means that large sections of the critical national infrastructure belong to private businesses. The cynical may declare that most of this strategy amounts to a grandiose awareness campaign. Our rebut- tal would be that the global and mostly asymmetric nature of the threat means that absolute prevention is impossible, and in a situation where the entire chain is only as strong as its weakest link, widespread awareness and action is absolutely necessary. Government Commu- nications Headquarters (GCHQ), the UK's provider of signals intelligence and information assurance, estimates that on balance, 80% of attacks are preventable by "simple best practice." This could be something as simple as remembering to log out, updating anti-virus software, or confirming the identity of a contractor, which would, incidentally, have prevented the Barclays theft of April 2013. On the world stage, the UK ratified the 2001 Budapest Convention on Cybercrime in 2011, the same year that the Strategy was consolidated. Questions were raised regarding the practical usefulness of this initiative, the argument being that it would be ineffective without the involvement of Russia and China, from where a dispro- portionate number of attacks originate. 25
  • 26. Figure 1-NationalCyberSecurityProgrammeExpenditure Breakdown2012.Source:CabinetOffice,www.gov.uk Practical Solutions: Prevent and Mitigate We shall turn next to the further ways through which the cyber threat can be managed. A totally secure chain all down the line of stakeholders cannot be guaranteed, for the aforementioned reasons, but it can be helped by various measures. Businesses can and should implement contingency and response plans to mitigate the effect of attacks, especially in sensitive industries. Law firms, for example, are in possession of valuable information that is of particular interest to hackers, such as client data and intellectual property material. Yet only 35% of surveyed law firms had cyber response plans in place, and only 9% have produced cost estimates relating to cyber attacks, as opposed to 26% of businesses in other sectors, according to a Hildebrandt Institute survey of 2013. This indicates a more general theme in how businesses gener- allyrelatetocyberissues.Apartfromtheaforementioned profit motive considerations, there is also the unfortunate fact that sometimes functionality and security are a trade-off. Cyber issues can also seem obscure to people who are not 'computer literate’, and this is equated with irrelevance by the human ego. Additionally, internal secu- rity and confidentiality breaches not related to cyber matters have been a more traditional concern, particularly in law firms. There is no lack of structural and institutional prevention andmitigationmeasuresbusinessescantake,ifresources allow it (which is often the issue which halts these initia- tives at their inception in conference rooms). “WHATDOESN’TKILLYOU” Cyber ResilienceandThreat BY MARIKAN.JOSEPHIDES IT security audits can be performed; specialised employ- ee training can be conducted; security liability insurance can be purchased; and of course response plans no matter how rudimentary are better than no plan, even if they simply establish a team that can be contacted or assembleachainofcommandtodealwiththesematters. Deloitte recommends a 'graceful degradation' approach against DOS attacks, which are the most common type. 'Graceful degradation' is a method of pre-emptive planning, using a pre-defined set of responses that allow systems to continue operating sub-optimally. Essentially this just means that the firm in question, having established 'configurations' of system failure, would know how to continue working while these configura- tions are compromised, from the detection of the vector, up until recovery. Market-Wide Exercises (MWEs) are also a viable route, pertinent to industries considered part of the critical national infrastructure. MWEs are stress tests involving a wide range of relevant parties. A major MWE, named 'Operation Waking Shark II' - a sequel to 2011’s ‘Waking Shark’tookplaceintheLondonfinancialsector(obviously a hugely desirable target) on 12 November 2013. It was co-ordinated by the Bank of England, the Treasury, and the Financial Conduct Authority. As well as GCHQ, the CPNI, and the CSOC, employees across 87 firms were involved. These included banks, exchanges, hedge funds, brokers, and asset managers. Reports on the exercise’s conclusions have not yet been released at the time of writing, but Waking Shark 2011, set against the backdrop of the London Olympic and Paralympic Games, successfully highlighted vulnerabili- ties to be improved upon, largely concerning co-ordina- tion among services, particularly (worryingly) CHAPS (Clearing House Automated Payment System) transac- tions, the latter of which facilitate same-day transfers and are used all around the UK for business and personal purposes, as well as in mortgage advances. Firms were promisingly effective at maintaining the provision of services. While such tests are valuable in finding where the weak spots are, criticism has been levelled at their infrequency and lack of focus on accidental breaches and fraud. Of course, they are also lacking in the element of surprise. Additionally, a more sophisticated, subversive attack will evade immediate detection, and may not even be correctly identified until significant damage is done. 26
  • 27. We have already discussed the importance of the human element in cyber security. All it can take is somebody forgetting to log out. For this, all that can be done is to advise people to exercise caution, a lack of which - to reiterate - leads to 80% of attacks, as posited by GCHQ. Unfortunatelycommonsenseisnotsocommon.Another suggestion is the implementation of biometric authenti- cation; this is a burgeoning field. The Bottom Line : So What? Defence Secretary Philip Hammond confirmed in September2013thattheUKwas"developingafullspec- trum cyber capability, including a strike capability." This move confounded the world - what purpose would this announcement serve? China, Israel, Russia and the US had all kept quiet about their cyber activity (at least officially) despite said activity being obvious. At best, the UK was losing its claim to the 'moral high ground'. At worst, it is tempting fate - 'for the lulz' hackers have been motivated to action by much less. (For example: when the CEO of HBGary Federal, a computer security firm, threatened that he could unmask hacktivist collec- tive Anonymous, they completely destroyed the compa- ny’s data, accessed and published sensitive e-mails, and defaced the company's website) Alternatively, it could just be a politically expedient move to emphasise the importance of cyber initiatives. Inanycase,concernhasbeenexpressedelsewhereinthe UK Government. Director of GCHQ Ian Lobban's assess- mentisthatthethreatismostprominentlyfromstateand state-affiliated actors who have improved the speed at which they can proceed from reconnaissance to activity. Theramificationsonthemilitaryfromtheentwinementof military capability and the defence industry are also an issue, and it is at industry level that technological advanc- es are compromised. On this front, more stringent measures in manufacturing and supply chain manage- ment could be used, such as better vetting of personnel. In the final analysis, there may be too much worrying going on. Experts think it extremely unlikely that the whole Internet and major systems would or could all be taken out at once, due to the decentralised way these networks operate. “WHATDOESN’TKILLYOU” Cyber ResilienceandThreat BY MARIKAN.JOSEPHIDES To a certain extent the threat may have an element of the self-fulfilling prophecy, and we may not be facing a scenario worthy of a blockbuster action film. But the convergenceofourphysicalandvirtualworldsmakes this acauseofconcern-aDOSattackonahospital,forexam- ple, could cost lives. Losing control of our online identity is akin to losing control of our lives. And a 'proxy server' war will most definitely contribute to international tensions offline. AwesomeFace/EpicSmileyisaubiquitousmeme,often usedto conveyeitherdisapproval, orthat one hasacted 'forthe lulz.'(Source:TheInternet-Inattributable) In many ways, the response to the cyber threat - mitigation and prevention - is analogous to dealing with 'traditional' forms of terrorism in this age of uncertainty. Indeed, the Irish Republican Army message addressed to the Thatcher Government after the Brighton Bombing in 1984 is entirely relevant to the subject of our discussion: "Remember we only have to be lucky once. You have to be lucky always." 27
  • 28. Due to the inglorious legacy of the lost generation (the lost opportunities in economics after 1990 where Japan’s economy stagnated and its governments became progressively weaker) Japan now confronts multiple and possibly increasingly difficult security challenges. After 1990 Japan experienced underperforming governments, its economy stagnated, and the linkage between weak governments and economic performance is not coinci- dental. In 2011 the Fukushima earthquake and related nuclear meltdowngeneratedaprofoundinternalshockandcrisis. Meanwhile the spectacular rise of China brought a major rival into being and the United States’ (US) power declined due to profligate economic policies and an unprecedented level of strategic incompetence from US governments. Thus Japan did not escape the global economic crisis which has existed since 2008 and also faces profound demographic challenges as its birth rate remains far under the population level of 2.1 children per family that is the established replacement rate while Japan is also not welcoming to immigrants who could fill the gap. This set of socio-political-economic challenges has only encouragedbothNorthKoreaandChina,ifnotRussia,to attempt to take advantage of Japan’s perceived decline and/or weakness, the former through claims to the East China Sea and what appears to be a constant game of sabre-rattling and psychological warfare involving the threat of force while North Korea’s increased missile capability and nuclear arsenal clearly represent threats to Japan. Meanwhile Russia regularly sends aircraft into Japanese airspace even as it negotiates normalisation and other accordswithJapan.Toanoutsideobserveritseemsclear, therefore, that to address these internal and external issues Japan needs to generate a robust invigorated government that could tackle both its economic malaise and the multiplying military threats to its security. From a national security standpoint both the domestic reforms and Prime Minister Shinzo Abe’s foreign and defence policies are inseparable parts of a single programme of action. Geoeconomics and geostrategy march hand in hand in Abe’s programme. Japan Responds toMultiple SecurityChallenges BYSTEPHEN BLANK TheAbeGovernment,bywinningadecisiveParliamenta- ryelectionin2013,canalreadyprovidestrongandsteady government until 2016. Moreover, Abe has promise such leadershipandactedvigorouslytoregeneratetheecono- my. He has already increased government spending and the money supply. Increased government spending also means a substantial rise in defence spending to augment Japan’sownmilitarycapabilities.ButnowAbemustenact genuine structural reform and thus confront the entrenched lobbies who benefit from the status quo but, by so doing, inhibit Japan’s growth and comprehensive national power. Indeed, not all observers are convinced that he is dong so or will do so, in which case they expect his reforms to enjoy only limited success. But economic reform is not confined to Japan. Japan must diversify its exports lest it become too dependent ontheChinesemarket. Japanreceivedarealshockwhen China, during the period 2010-2011, started restricting the sale of crucial “rare earth” minerals that are vital to Japan. However, by going abroad in response to China’s artificial increase of prices, Japan successfully elicited other countries’ production of rare earths to the point where prices have declined 60% since 2011. Essentially the market broke the Chinese monopoly. Likewise, during his travels, Abe is accompanied by large business delegations to promote exports of nuclear reactors, other infrastructural items, and arms. Abe’s expansionary currency policy lowers the Yen’s price abroad leading to more exports. PRIME MINISTER SHINZO ABE (IMAGE SOURCE : WIKIMEDIA COMMONS) 28
  • 29. In a concurrent example the Abe Government has made clear its intention to revise the Japanese Constitution. While this initiative would include revisions of Article 9 on Japan’s army being used only for self-defence instead of the collective defence that the Japanese Government prefers, such significant reforms are by no means only confined to the defence sector. Meanwhile, within that sector, Abe has also enacted legislation creating a Japanese equivalent to the US National Security Council. The revived nationalism inherent within Abe’s programme will probably help him create a domestic consensus but it also creates significantly more tension with South Korea (ROK) and precludes effective military cooperation with the ROK because to Seoul it appears thatJapanstillcannotadmititshistory. Thisalsoaddsfuel to the fire in China as it provides Beijing and domestic Chinese nationalist elements with both the means of inciting hostility towards against Japan and a way to pressure the Chinese Government to add nationalist emotionalism to the already substantial geostrategic rivalry with Japan. Foreign Policy Challenges Because domestic reform and the reduction of external security threats are linked, it is quite possible that the test of Abe’s success will come not just in the success of his economic reforms, but also in foreign and defence policy, where his government has been equally active and vigor- ous. Japan, like other Northeast and Southeast Asian states confronts what is arguably a deteriorating security situation. Many but by no means all of the forces responsible for this trend pertain to the rise of a seemingly increasingly belligerent China. As Dr. Corey Wallace, Professor of International Politics at the University of Auckland has recently written, “Strengthening economic cooperation and interdependence between nations in Northeast Asia from the late 1990s seems to have had little impact upon the persistence of diplomatic and security tensions in the region.” But we cannot forget about the North Korean threat. Whether or not North Korea plans another major weap- ons test, its missile and nuclear programmes continue apace and nothing to date has stopped them. JapanRespondstoMultiple Security Challenges BYSTEPHENBLANK TheAbeGovernment,bywinningadecisiveParliamenta- ryelectionin2013,canalreadyprovidestrongandsteady government until 2016. Moreover, Abe has promise such leadershipandactedvigorouslytoregeneratetheecono- my. He has already increased government spending and the money supply. Increased government spending also means a substantial rise in defence spending to augment Japan’sownmilitarycapabilities.ButnowAbemustenact genuine structural reform and thus confront the entrenched lobbies who benefit from the status quo but, by so doing, inhibit Japan’s growth and comprehensive national power. Indeed, not all observers are convinced that he is dong so or will do so, in which case they expect his reforms to enjoy only limited success. Moreover, the domestic situation in North Korea is clearly quite unstable given the execution of Kim Jong Un’s uncleandformermentorJangSongThaekon12Decem- ber 2013 and the subsequent purge of his associates amid allegations of his attempting to mount a coup against his nephew. These allegations are unprecedent- ed in that they publicly reveal dissent and division at the most senior levels of the Government of North Korea (DPRK) that can only add to the pervasive sense of unease and instability inherent in dealing with the DPRK. Adding to Japanese concerns is the fact, according to Wallace, that Japanese officials discern a lack of serious- ness among their negotiating partners in stopping the expansion of North Korea’s nuclear and missile programmes that threaten Japan. These officials also believe that China is enabling and not restricting North Korea. As tensions with South Korea over rival histories and nationalisms frustrate bilateral cooperation between them and trilateral cooperation with the US, Japanese officials evidently perceive China as being unable or unwilling to restrain North Korea. Atthesametime,theChinesethreatismulti-dimensional, being both military and economic, as the rare earths episode and the continuing crises in both the East China and South China Seas indicate. Thus China presents an extraordinarily difficult series of challenges to Japan. Additionally, Japanese officials increasingly fear not just the obvious rise in Chinese capabilities and the threatening rhetoric of the People’s Liberation Army, 29