HYBRID COE - COUNTERING HYBRID THREATS: ROLE OF PRIVATE SECTOR INCREASINGLY IMPORTANT. SHARED RESPONSIBILITY NEEDED

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Strategic Analysis March 2018
Countering Hybrid Threats:
Role of Private Sector
Increasingly Important.
Shared Responsibility Needed

         JARNO LIMNÉLL

        Hybrid CoE
Strategic Analysis March 2018

                    Countering Hybrid Threats:
                    Role of Private Sector
                    Increasingly Important.
                    Shared Responsibility Needed
                    Cooperation between industry and governmental agencies on joint
                    security initiatives can leverage the unique yet complementary
                    strengths of both sectors, writes Jarno Limnéll, Professor of
                    Cybersecurity at Aalto University, Finland, and Adjunct
                    Professor at the University of Jyväskylä, the Finnish National
                    Defence University, and Tampere University of Technology.

               It is often overlooked in security anal-    from working together. Cooperation
               yses that the private sector has an         between industry and governmental
               essential role to play in striving for      agencies on joint security initiatives can
               security. In many Western countries,        leverage the unique yet complementary
               80–90% of all critical infrastructure       strength of both sectors.
               is owned and operated by the private
               sector. The first line of defence often     In the age of hybrid threats, cooperation
               resides outside of the government           between the public and the private sec-
               and lands squarely on the shoulders         tors is increasingly important. “Whole
               of private industry. It is important        of government”, “whole of nation”, and
               to protect critical infrastructures         “comprehensive security” are all princi-
               (e.g. energy supply chains, transport,      ples that are heard in speeches or read
               public health), since an unconvention-      in national strategies to an increasingly
               al attack by perpetrators of hybrid         extent today when nation-states are
               threats against any “soft target” could     preparing for hybrid threats. In short,
               lead to serious economic or societal        cooperation has been understood as a
               disruption. Particularly when securing      matter of paramount importance. The
               a nation´s critical infrastructure and      demand for inter-agency collaboration
               developing its resilience, shared re-       has grown when facing security chal-
               sponsibility between the public and the     lenges, and has been identified as a ne-
               private sectors is a necessity. This must   cessity in order to achieve an adequate
               take into account the fact that the pub-    level of national security for the nation.
               lic and private sectors alike can benefit   However, cooperation between public

               The demand for inter-agency collaboration has grown
               when facing security challenges, and has been identified
               as a necessity in order to achieve an adequate level of
               national security for the nation.

2   Strategic Analysis March 2018
agencies is not enough – it should be       between the public and private sectors
               supplemented by cooperation between         is necessary in order to combat growing
               the government, the private sector          cyber-crimes, attacks and other cyber
               and civil society. In fact, collaborative   threats in contemporary society. In the
               thinking should extend even further         EU´s updated Cybersecurity Strategy,
               today, especially when preparing for        cooperation with the private sector
               threats that are not confined to national   is fundamental for public authorities.
               boundaries. A “Like-minded nations”         Given the shared responsibilities of the
               with “like-minded global companies”         state, industry and society will only be
               cooperative approach is a prerequi-         successful if all players act as partners.
               site when countering modern hybrid          The digital world consists of private-
               threats.                                    ly-owned infrastructure for the most
                                                           part. Western national cybersecurity
               It is now essential to adopt a broader      strategies categorize cybersecurity as
               and deeper understanding of private         a “shared responsibility” with a direct
               sector security involvement. There          or indirect emphasis on the concept
               are numerous examples of the ways in        of public-private partnerships, and a
               which the private sector has become         strategic focus on the promotion of
               deeply involved in providing security       the cybersecurity industry.
               against diverse, complex and often
               transnational security risks. They are      On a national basis, public-private
               not only protecting the vital functions     partnerships focus on protecting critical
               of society, private companies are           infrastructure, serving as a strategic
               also taking care of border security         signal for preparedness in national se-
               and emergency preparedness, for             curity, as well as generating a competi-
               example. The armed forces have also         tive advantage in economic terms. If one
               become increasingly dependent on in-        wants to be a credible actor in cyber-
               frastructure and assets in the private      security, a strong cybersecurity private
               sector. The trend in Western countries      sector is needed. One example is the
               is for private companies to take on even    contractual Public-Private Partnership
               greater responsibilities task-wise, which   (cPPP) on cybersecurity between the
               was previously the remit of the public      European Commission and the Europe-
               sector. The role of the private sector in   an Cybersecurity Organization (ECSO),
               national security is duly increasing as a   introduced in 2016. Its main objective
               result. On the other hand, careful con-     is to promote the status of the Europe-
               sideration should be given to those areas   an Union as an independent security
               of national security and vital societal     actor by “building a strong, resilient and
               functions that would be considered “off     globally competitive European cyber-
               limits” for privatization.                  security industry with a strong Europe-
                                                           an-based offering”.
               Cybersecurity can be described as a
               model example of the need for pub-          In cybersecurity, developing partner-
               lic-private cooperation. Collaboration      ships between government authorities

                Cybersecurity can be described as a model
                example of the need for public-private cooperation.

3   Strategic Analysis March 2018
and infrastructure owners and opera-         It can be predicted that private sec-
                tors is a way to help ensure the stability   tor companies, the owners of critical
                and availability of critical information     infrastructure, are going to be targeted
                and communication technologies.              more frequently and to fall victim to
                                                             more sophisticated cyber attacks in the
                Partnership helps the government             coming years. When it comes to hybrid
                disseminate vital information about          influencing, private companies may be
                vulnerabilities and security threats,        the main targets. This raises an import-
                coordinate incident management, and          ant question about the responsibility
                understand the resilience of critical in-    governments have to support private
                frastructure. The same partnership can       companies in both political and practical
                help industry become aware of cyber          ways. Companies need to be support-
                threats and vulnerabilities to which it      ed, particularly if they are facing ad-
                would not normally have access, and im-      versaries (nation-state or non-state
                prove industry’s ability to manage risk.     actors) who use sophisticated attack
                This must be seen as a win-win situation.    techniques.

                It has been predicted that humankind might
                change more in the next three decades than it has
                 in the past three centuries – because of technology.

                Countering cyber threats is common           The pace of technological advance-
                ground for both the public and private       ment is faster than ever at the moment.
                sectors. However, the cooperation            The development we are witnessing
                needs to be deepened since it is a vital     in different disciplines is huge and the
                issue for both sectors. The public and       effects of technological development
                private sectors should share more            on societies and people’s lives will be
                information related to cyber threats,        dramatic. This development also raises
                vulnerabilities and consequences. The        many questions, especially in relation to
                sectors should also work together in         the security of people and societies, as
                order to strengthen trust among soci-        well as to warfare and business. These
                eties and to discuss contentious topics      questions are not easily answered,
                related to technical solutions, such as      since it has been predicted that hu-
                encryption, data access and cloud serv-      mankind might change more in the next
                ers. Another key issue entails sharing       three decades than it has in the past
                best practices related to cybersecurity      three centuries – because of technol-
                education and training of end users. The     ogy. The global growth of technolog-
                public and private sectors must also co-     ical companies indicates that we are
                operate through the fostering of tech-       going through a technological revolu-
                nology innovations and investments to        tion that lists keywords such as digi-
                meet global security challenges. Public      tization, robotization, virtualization
                and private sector preparedness for          and artificial intelligence. In addition,
                cyber-incident management should be          ethical issues related to the develop-
                trained through national/international       ment of technology are clearly be-
                cyber exercises, which test the pre-         coming of greater relevance. A perti-
                paredness required by cyber incidents.       nent question, for instance, concerns

4   Strategic Analysis March 2018
how to bring greater transparency to the        today’s world. GAFA may be redefining
                ever-increasing number of algorithms            the very notion of governance, as well
                that affect our thinking. Or what kind of       as the concepts of political, societal and
                ethical rules should govern the way that        even geographical organizations and
                self-driving cars are programmed?               structures.

                As technological advancements are becoming more influential and the
                role of private companies is increasing in both world politics and security,
                a culture of shared responsibility will enhance the strength of democratic
                states and will be a powerful tool for countering hybrid threats.

                In this disruptive development, the role of     There has been a lot of discussion lately
                the private sector is both increasing and       about misinformation, which has been
                increasingly more powerful. This shifts         rife in social media. Private companies
                the balance between governments and             own the social media platforms, which
                the private sector. In the field of technolo-   people are using ever more frequently.
                gy – probably – the most powerful actors        As social media has become more effec-
                before too long will not be nation-states       tive, demands to limit the prevalence and
                but private sector technology companies.        potential disruptiveness of online mis-
                Much of the enabling technology for the         information have intensified. Currently,
                fourth industrial revolution is originated,     amid increasing pressure from govern-
                developed and exchanged in the private          ments and users, technology companies
                sector, where research and development          have also been taking steps to reduce the
                budgets far exceed those of many indus-         financial incentives for the creators of
                trialized countries. Technological break-       fake news and to enhance the transpar-
                throughs will most probably happen              ency of material on their platforms. This
                in these innovative companies, which            is a good example of how shared respon-
                usually have the brightest employees            sibility is being created in the techno-
                and latest technologies.                        logical environment and preserving the
                                                                strengths of democracy – one step at a
                For example, GAFA is an acronym for             time.
                Google, Apple, Facebook, and Amazon,
                which are the four most powerful Amer-          As technological advancements are
                ican technology giants. The market value        becoming more influential and the role of
                of these four companies was estimated           private companies is increasing in both
                at USD 2,398 billion in 2017. For this set      world politics and security, a culture
                of private, non-state actors such finan-        of shared responsibility will enhance
                cial power and market influence would           the strength of democratic states and
                be enough to impress in itself. There are       will be a powerful tool for countering
                many other giant technology companies           hybrid threats.
                too. The way private sector companies
                collect and analyse data, create algo-          There are three key starting points for
                rithms that are more sophisticated,             creating this culture of shared respon-
                develop disruptive technology and               sibility. Firstly, the technology compa-
                build their own global undersea inter-          nies should be invited to the “tables”
                net cable systems, for example, already         where governments are discussing
                reflects their power and influence in           and making decisions on security.

5   Strategic Analysis March 2018
Engaging the private sector is an                practical actions. Thirdly, increasing
                    important step. Secondly, private                transparency – both in politics and
                    sector companies must know their                 in technology – is the foundation
                    responsibilities and demonstrate                 of trust, not least when it comes to
                    their social responsibility through              security.

              Author
                               Jarno Limnéll is Professor of Cybersecurity at Aalto University, Finland, and an
                               adjunct professor in three other Finnish universities. He also works for a private
                               company. He has been working with security issues for over 20 years, and has a
                               profound understanding of the global threat landscape, combined with the courage
                               to address the most complex issues. Professor Limnéll has published a comprehen-
                               sive list of works on security issues. His most recent book is entitled Are you scared?
                               Young people and the future of security.

6   Strategic Analysis March 2018
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                               Statista (2018) Google, Apple, Facebook, and Amazon (GAFA) - Statistics & Facts.
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                                    The European Centre of Excellence for Countering Hybrid Threats
                                    tel. +358 400 253800 www.hybridcoe.fi

                                    ISBN 978-952-7282-05-2

                                    The European Centre of Excellence for Countering Hybrid Threats (Hybrid CoE) serves as a
                                    hub of expertise to enhance civil-military capabilities, resilience, and preparedness to counter
                                    hybrid threats with a special focus on European security and on EU–NATO cooperation.

                                    The responsibility for the views expressed ultimately rests with the authors.

7   Strategic Analysis March 2018
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