2014, VOL. II
NETWORK NEW YORK LONDON
Cyber Security:
Protect Your Firm With insights from BAE Systems Applied Intelligence, IBM and KPMG
FEATURING BAE SYSTEMS’
Jim Anderson
President, Americas Region BAE Systems Applied Intelligence
INSIDE
An update on our policy work on the Transatlantic trade and Investment Partnership
»»
Page 15
LEADING WOMEN
LEADING WOMEN POWERING CAREERS At Hays we support the advancement of women in the workplace, which is why we are delighted to be supporting a number of the BritishAmerican Business Women’s Forum events this year.
We’re working hard to develop Leading Women, a forum for successful senior business women like you to share insight, develop expertise and advance your career. We want to successfully connect you with the world of work to help you fulfil your career ambitions.
In the ever-changing workplace, there’s an imbalance of women in senior positions, seeing companies missing out on highly talented professionals. By improving access to this talent, organisations will be better equipped to drive performance, grow their business and secure future success.
With 102 offices within UK, we operate across 20 specialist areas, giving us the breadth and depth of expertise to help you build your networks.
hays.co.uk/leading-women
If you would like to hear more about our Leading Women network contact us at leading-women@hays.com
CONTENTS 2014, VOL. II
NETWORK
2 WELCOME Jeffries Briginshaw, Managing Director, BritishAmerican Business
NEW YORK LONDON
Cyber Security:
Protect Your Firm With insights from BAE Systems Applied Intelligence, IBM and KPMG
FEATURING BAE SYSTEMS’
Jim Anderson
President, Americas Region BAE Systems Applied Intelligence
INSIDE
An update on our policy work on the Transatlantic trade and Investment Partnership
»»
TRANSATLANTIC COUNCIL MEMBERS
MEET THE NEW MEMBERS
3
New Board of Directors and International Advisory Board Listing
New Members Listing
CYBER SECURITY: PROTECT YOUR BRAND
6
Protection From Cyber Threats: What Your Board Needs To Know Jim Anderson, President, Americas Region, BAE Systems Applied Intelligence
8
Tackling Cyber Risk: A Complex Mission Nick Coleman, Global Head of Cyber Security Intelligence, IBM Services, and Jonathan Sage, EU Lead on Cybersecurity Policy, IBM Governmental Programmes
Page 15
BRITISHAMERICAN BUSINESS London 75 Brook Street London, W1K 4AD Tel: +44 (0)20 7290 9888 Fax: +44 (0)20 7491 9172 Email: ukinfo@babinc.org New York 52 Vanderbilt Avenue, 20th Floor New York, NY 10017 Tel: +1 (212) 661 4060 Fax: +1 (212) 661 4074 Email: nyinfo@babinc.org Website: www.babinc.org tradeinvest.babinc.org Follow us on: Twitter @BABLondon LinkedIn “BritishAmerican Business”
BritishAmerican Business: The Company to Keep BritishAmerican Business is the leading transatlantic business organization, dedicated to helping companies build their business on both sides of the Atlantic. Its membership brings together the world’s leading multinational and middle-market companies across sectors and geographies; and more than 100 of the world’s most successful CEOs support its work through their participation in its Advisory Board. It incorporates the American Chamber of Commerce (UK) and the BritishAmerican Chamber of Commerce (USA), which merged in 2000 to create a single, pre-eminent transatlantic organization that could support its members across the Atlantic.
Support Your Export Distributors: Localise Your Website! John Worthington, Managing Director, ibt partners
12 The Partnership Revolution: One Plus One Is Greater Than Two Claire Farrington, Partnership Manager, Grange Hotels
The Collateral Complications of International M&A Jason Martindale, Senior Director, UK and Europe, Radius
13 Hydraulic Fracturing In the UK: What’s the Latest? Caroline Almond, Senior Associate, Squire Patton Boggs
Are You Using 084 or 087 Numbers? If So, You May Want To Read This Keith Lourie Unified Communications Consultant, IP Solutions
14 AUTHOR SPOTLIGHTS 15 POLICY & FORUMS
Policy Update
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When Online Goes Offline: Total Internet Failure Stephen Bonner, Partner, KPMG UK
16 An Update from our Law Forum, John Cater, Forums Programme Manager, BritishAmerican Business
INDUSTRY INSIGHTS
17 Data Laws Update: Further Changes and New Initiatives for International Businesses to Note Rafi Azim-Khan, Chair, BritishAmerican Business Law Forum
10 Making Big Data Work on the Front Line Sean Doyle, Executive Vice President, Americas, British Airways
facebook.com/ BritishAmericanBusinessLondon
EDITOR Amanda Zambon azambon@babinc.org
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Helping SMEs Drive Growth Through Digital Skills, Miguel-Ángel RodríguezSola Group Director for Digital, Marketing & Customer Development, Lloyds Banking Group Learning from Nature: Adapting to the Environment Nina Glass, Consultant, Eric Salmon & Partners
EVENT HIGHLIGHTS
18 London Event Highlights 22 New York Event Highlights 24 UPCOMING EVENTS
London Staff Jeffries Briginshaw Managing Director +44 (0)20 7290 9888 jbriginshaw@babinc.org
Events and Marketing Katie Banham Director – Events & Marketing +44 (0)20 7290 9873 kbanham@babinc.org
Office Management John Adam Office Manager/Accountant +44 (0)20 7290 9886 jadam@babinc.org
Membership Nick Royle Director of Membership +44 (0)20 7290 9880 nroyle@babinc.org
John Cater Forums Programme Manager +44 (0)20 7290 9874 jcater@babinc.org
Sherry Dolatshahi Information Manager & Executive Assistant +44 (0)20 7290 9883 sdolatshahi@babinc.org
Tariro Masukume Membership Manager +44 (0)20 7290 9881 tmasukume@babinc.org Lucy Russell Membership Manager +44 20 7290 9882 lrussell@babinc.org
BritishAmerican Business NETWORK 2014, VOL. II
Sabina Hussain Events Manager +44 (0)20 7290 9875 shussain@babinc.org Amanda Zambon Communications Manager +44 (0)20 790 9879 azambon@babinc.org Emanuel Adam Policy and Public Affairs Manager +44 (0)20 7290 9885 eadam@babinc.org
View this edition of Network online:
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WELCOME
W
e’re off! Following a pause for a summer programme break, our Autumn season is upon us. Between now and Christmas, BAB has a great schedule of events lined up for you, our valued members. We are especially excited about our upcoming gala dinner and reception to celebrate the UK-US relationship on 10th September, which will be attended by the Deputy Prime Minister, the Rt Hon Nick Clegg MP and His Excellency Matthew Barzun, the American Ambassador to the Court of St James’s. Another highlight of this season will be our Autumn Conference on The New Transatlantic Market: Gamechangers, Opportunities and Risks, to be hosted by Bloomberg on 8th October. We hope to see you there! In the meantime, I am delighted to present the current edition of Network Magazine, on a theme of critical importance to all our members: “Cyber Security: Protect Your Firm”. Our Spring Conference on Innovation and Disruptive Technology in May showcased future technologies including wearable technology, self-driving cars, 3D Printing, mobile internet and the Internet of Things (see page 18 for photos of the conference). However, as business moves increasingly online, driving the application of technologies, new vulnerabilities in terms of cyber threats create ever more systemic risks. We hope that our three feature articles from BAE Systems Applied Intelligence, IBM
Jeffries Briginshaw Managing Director, BritishAmerican Business jbriginshaw@babinc.org
and KPMG will be informative and provide you with some tangible recommendations to help you to protect your business. Elsewhere in this edition, you will find Industry Insights from other members on issues including: big data, adapting to new markets, mergers, the importance of partnerships, changes to UK phone numbers and hydraulic fracking. As a broad church of different sectors and pursuits, we have an advantage in being able to show you in every edition of Network a great cross section of business cutting edge, you might say. We have also included an update on our policy work with a specific focus on the Transatlantic Trade and Investment Partnership (TTIP) and in keeping with the technology theme once again, an insight from our Law Forum Head Rafi Azim-Khan of Pillsbury Winthrop Shaw Pittman LLP on data laws. We are also pleased to share some of our best photo snaps captured during our successful season of events throughout the Spring, including our Annual Corporate Citizenship Awards Dinner, honouring Peter Hancock, CEO of AIG and Peter Sands, Group CEO of Standard Chartered Plc, our popular Women’s Forum, and also a number high-level roundtables with business and government leaders (pages 18-20). Don’t forget to turn to page 24 where we have outlined some of the highlights of the upcoming events programme – we are looking forward to seeing you soon! n
T RA N SAT L A N T I C CO U N C I L M E M B E R S Transatlantic Council Membership is reserved for a select group of BritishAmerican Business’s leading companies, and offers them a customized program of exclusive networking, promotional, and business opportunities, in addition to the regular benefits associated with membership in BritishAmerican Business.
3M UK
BP International
Heathrow Airport
Lockheed Martin UK
Raytheon UK
ACE Overseas General
British Airways
Herbert Smith Freehills
London & Partners
Reed Elsevier
ACS International Schools
BT Group
HP
CBRE
HSBC
London Philharmonic Orchestra
Reed Smith
Addleshaw Goddard ADP
Chevron
IBM
Magrath
AIG
Citi
Invest Northern Ireland
AlixPartners
City of London
IPSA International
Marriott Hotels International Limited
American Airlines
Cubitt Consulting
J.P. Morgan
Aon UK Ltd
Cushman & Wakefield
Arnold & Porter (UK)
Deloitte
Jacksonville Jaguars, NFL International
Arup
Delta Air Lines
Asia House
Edelman
AT&T
ExxonMobil
BAE Systems Applied Intelligence
EY
Baker & McKenzie
Ford Motor Company
Bank of America Merrill Lynch
Google UK
Barclays
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Federal Express Europe
Grange Hotels
Blick Rothenberg
Gulfstream Aerospace Corporation
BNY Mellon
HCA International
Royal Bank of Scotland Group TheCityUK
Shakespeare’s Globe
Thomson Reuters
Shearman & Sterling
UK Trade & Investment
Shell
United Airlines
Marsh UK
Speechly Bircham
Universal Music
Mastercard Worldwide
Spence & Partners
UPS
McKinsey & Company
Squire Patton Boggs
US Embassy
Jones Lang LaSalle
Mercer
Standard Chartered Bank
JSI Logistics
Moelis & Company
Just Marketing International
National Theatre
State Street Bank & Trust Company
Verizon Enterprise Solutions
King & Spalding
Virgin Atlantic Airways
Sun European Partners
Weber Shandwick
PACCAR
Weil, Gotshal & Manges
Knight Frank
TASIS The American School in England
Philharmonia Orchestra
KPMG
The British Land Company
Philip Morris
Willis Group
Linklaters
Withers
Links of London
Pillsbury Winthrop Shaw Pittman
The McGraw-Hill Companies
Lloyd’s
Pitch Factory
The New York Times Media Group
Lloyds Banking Group
PwC
The Risk Advisory Group
Northrop Grumman UK
Wells Fargo
WPP Xerox Zurich Insurance
BritishAmerican Business NETWORK 2014, VOL. II
MEET THE NEW MEMBERS
N ew Bo a rd a n d I A B M e m b e rs BAB is governed by a transatlantic Board of Directors, led by our Chairman, Irene Dorner, Group Managing Director HSBC Holdings plc, and President and CEO of HSBC USA, and our Deputy Chairman/President, Nicholas C. Walsh, Vice Chairman, AIG Property Casualty, Senior Vice President, AIG. The Board’s active support and commitment to BAB and its objectives are important to ensuring our continued success as an organization. We also enjoy strong support from our International Advisory Board, consisting of chairmen and CEOs from more than 100 major, multinational companies. We are delighted to announce that the following new members have recently join our Board of Directors and International Advisory Board.
NEW BOARD MEMBERS JAMES BARDRICK Citi Country Officer Vice Chairman Corporate & Investment Banking Citi SIMON BROCKLEBANKFOWLER Managing Partner Cubitt Consulting
BARBARA BYRNE Vice Chairman, Investment Banking Barclays VIVIAN HUNT Managing Partner McKinsey & Company
JESSICA IRSCHICK Global Head of Equities Sales Strategy Bank of America Merrill Lynch DANIEL T. RYAN Partner in Charge- New York Office & Regional Managing Partner for the Financial services Practice in the Americas Heidrick & Struggles
INTERNATIONAL ADVISORY BOARD MEMBERS GREG HODKINSON Global Chairman Arup DOMINIC JERMEY Chief Executive UK Trade & Investment
N ew Tra n s a t l a n t i c Co u n c i l M e m b e rs
IBM UNITED KINGDOM
JSI LOGISTICS
SHEARMAN & STERLING
76 Upper Ground London, SE1 9PZ UK +44(0) 20 7202 3000 www.ibm.com Richard Ward, Public Affairs Director richard_ward@uk.ibm.com
Building 553 Shoreham Road TW6 3RG, Heathrow Airport UK +44 (0) 20 8759 6375 www.jsilogistics.com Gerry Power, MD UK & Ireland gpower@jsilogistics.com
IBM is the world's largest IT and consulting services company with approximately 20,000 UK employees.
JSI provides integrated, flexible logistics solutions that address the unique and diverse needs of our customers across the globe.
Broadgate West 9 Appold Street London, EC2A 2AP UK +44 (0) 20 7655 5000 www.shearman.com Barney Reynolds, Partner barney.reynolds@shearman.com Shearman & Sterling is recognised and one of the leading international corporate and commercial law firms in London.
OUR MEMBERSHIP SPENCE & PARTNERS
SUN EUROPEAN PARTNERS
1 Berkeley Street London, W1J 8DJ UK +44 (0) 20 7495 5500 www.spenceandpartners.co.uk Marian Elliott, Director marian_elliott@spenceandpartners.co.uk
2 Park Street 1st Floor London, W1K 2HX UK +44 (0) 20 7318 1118 www.suneuropeanpartners.com Michael Kalb, Senior Managing Director kalb@suncappart.com
Spence & Partners is a privately owned UK firm of actuaries, consultants and pensions administrators.
BritishAmerican Business NETWORK 2014, VOL. II
Sun European Partners, LLP is the European adviser to Sun Capital Partners, Inc., that focuses on leveraged buyouts, equity, debt, and other investments in market leading companies throughout Europe.
TEAM WOULD LOVE TO HEAR FROM YOU! Please contact Nick Royle, Tariro Masukume, or Lucy Russell if you would like to discuss how to make the most of your membership. You can find their contact details on page 1 of this magazine.
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N ew S p o n so r M e m b e rs
BULGARI HOTEL & RESIDENCES
CROWELL & MORING
DLA PIPER
171 Knightsbridge London , SW1 7DW United Kingdom +44 (0) 20 7151 1055 www.bulgarihotels.com Zoe Collings Membership Manager zoe.collings@bulgarihotels.co.uk
11 Pilgrim Street London, EC4V 6RN UK +44 (0) 20 7413 0011 www.crowell.com Carol Martin Senior Counsel cmartin@crowell.com
3 Noble Street London, EC2V 7EE UK 44 (0)87 0011 1111 www.dlapiper.com Justin Portess Senior Marketing and Business Development Manager justin.portess@dlapiper.com
K+L GATES
NEXIA SMITH & WILLIAMSON
TRUPHONE
One New Change London, EC4M 9AF United Kingdom +44 (0) 20 7648 9000 www.klgates.com James Millward Associate Partner james.millward@klgates.com
25 Moorgate London, EC2R 6AY UK +44 (0) 20 7131 4000 www.smith.williamson.co.uk Stephen Drew Partner, Head of International Services stephen.drew@smith.williamson.co.uk
4 Lombard Street London, EC3V 9HD United Kingdom +44 (0) 20 3002 www.truphone.com Naresh Chouhan UK Marketing Director naresh.chouhan@truphone.com
UNIVERSITY OF EDINBURGH BUSINESS SCHOOL 29 Buccleuch Place Edinburgh, EH8 9JS UK +44 (0) 131 651 4212 www.business-school.ed.ac.uk Mhorag Sharp Employer Relations Manager mhorag.sharp@ed.ac.uk
N ew Co r p o ra te M e m b e rs Ascot Racecourse
BDHL
Sopher & Co
Andaz
Immigration in to America .Com
Eric Salmon & Partners
BARBRI
The Landmark
Coach
Dr. Paul Milata International Executive Search
TMF Pestana Hotel MADE
Cleveland Clinic Worldstrides Capstone Programs
Ogletree Deakins
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BritishAmerican Business NETWORK 2014, VOL. II
BAB Autumn Conference 2014
The New Transatlantic Market: Game Changers, Opportunities and Risks Wednesday 8th October 2014, at Bloomberg,
Speakers include:
Professor G. Anandalingam Dean, Imperial College Business School
Inga Beale CEO Lloyds
Janan Ganesh Political Commentator Financial Times
Charles Grant Director Centre for European Reform
Also featuring experts from:
• Bloomberg News • British Bankers Association
• Level 39 • Thomson Reuters
Topics will include: • Financial Services The challenge of maintaining transatlantic leadership • Wellbeing & Quality of Life The new barometer for success? • Distribution & Logistics The impact of new technology • UK/US/EU Politics Outlook and implications in election year
Hosted by
• OECD • RLM Finsbury
Register your place now! • Transatlantic Council Members 2 FREE places • Sponsor Level Members 1 FREE place • Corporate Level Members £95 + VAT • Non Members £145 + VAT
conference2014.babinc.org @BABLondon #BABConf14
F E AT U R E : C Y B E R S EC U R I T Y
PROTECTION FROM
CYBER THREATS: WHAT YOUR BOARD NEEDS TO KNOW
Jim Anderson President, Americas Region BAE Systems Applied Intelligence
What are some helpful tips for executives still trying to convince the “board room” of the cyber security imperative? Business growth will increasingly depend on the digitally interconnected and highly mobile nature of modern organizations. It is therefore essential that boards understand the true nature and extent of the increasing risks associated with “bad actors” adapting to current security environments and infiltrating data. While many Boards authorize significant spend on IT security, it is often misplaced due to an outdated understanding of the threats and their potential business impacts. A worrying observation is that even though many organizations are becoming increasingly aware of the risk, it often takes an emotional experience before real action is taken. In fact, according to our most recent Cyber Security Monitor research, 50 per cent of respondents said it would take clear understanding of vulnerabilities for their Board to take the risk of cyber attacks more seriously. We typically find that attacks can be felt very personally by Board members after an event, because the impact can be very immediate to business performance and often will directly affect a company’s reputation. In my opinion, any company that doesn’t invest in security will undoubtedly face repercussions associated with some sort of data breach. It is important to be informed and prepared to proactively manage this risk. There needs to be clear ownership of the risk at the Board level. Constant vigilance is essential through effective monitoring of networks and information assets for signs of attack so that actions are taken ahead of any harm being done. Robust plans should also be put in place to ensure a swift response to any successful attack, which can dramatically minimize any impact.
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Clearly, there is a need to convey the urgency of what is not a well understood and technical subject to Board members. A better understanding will enable them to both mitigate a very significant company risk while also recognizing the financial benefits of protecting customer data.
Is cyber crime the same in every sector? In our hyper connected world, rarely a week goes by without the news of a prominent organization, such as Target, eBay, or even Dominos becoming the victim of a cyber attack. For example, financial institutions are consistently targeted because of the financial assets they hold. For many years, security experts in this sector have been dealing with the threat of cyber crime and this has put them ahead of other organizations in terms of preparedness. Conversely, the retail sector has recently become a target for attackers. Different sectors have different vulnerabilities. As was seen with the attack on Target, Point of Sales (POS) devices are vulnerable and can be exploited to steal sensitive data. On the other hand, the oil and gas sector doesn’t have POS devices. Instead it has networks for Operational Technology (OT) such as industrial control systems or SCADA systems. OT provides unique opportunities to would-be attackers, driving the cyber related crimes like the one reported by the US Department of Homeland Security in May which revealed that the industrial control system of a public utility had been hacked by a sophisticated threat actor.
What are some of the key differences you’ve seen in cyber attacks from one country to another? Similar techniques are used globally in cyber attacks. Some of the main categories are: Spear Phishing, Water Hole Attacks, Distributed Denial
BritishAmerican Business NETWORK 2014, VOL. II
of Service (DDoS), Malware and Trojans. Some attacks are designed to be just a nuisance; however, many “bad actors” are determined to reach financial gain or to access critical assets such as intellectual property. Today, attackers are leveraging social engineering to be familiar with their targets. This means language, culture and familiarity are all factors that are now employed by “bad actors.” For example, the “Putter Panda” cyber attacks used popular productivity applications such as Adobe Reader and Microsoft to target golf-playing conference attendees. This was used to gather intelligence on US government organizations as well as satellite, aerospace and communication companies. In another example, Shylock attackers used drive-by downloads from legitimate websites to install malware – often leveraging behind the scenes social engineering techniques to direct victims to compromised websites. This particular type of malware was also capable of altering the helpline phone number on the websites to prevent victims from getting support.
As threat levels continue to rise and new threats emerge, what can firms do to be proactive instead of reactive in their security planning? The majority of cyber attacks we see are not entirely new, they are variations on a theme – whether it is an email based spear phishing,
can focus on the interpretation and production of intelligence for the business. This intelligence-led approach to security helps organizations stay current and connect what they’ve learned about the threat with their operational security teams.
What are some of the ways different industry sectors are responding to threats? There is actually quite a lot of commonality between sectors – differences are more a question of spend on security and how far along the “security journey” companies have travelled. The legacy security offerings like anti-virus and firewalls are deployed in most if not all sectors. However, newer techniques like behavioral based analytics used to detect Advanced Persistent Threats (APTs) are increasingly being used. Security maturity is closely correlated with how much attention a certain sector has received from attackers. Companies that form national infrastructures have been battling sophisticated cyber criminals for years. The same can be said for top tier financial institutions that have been faced with the ever increasing sophistication of cyber criminals for many years. However, businesses in the professional services sector, which have not been traditionally targeted, are now becoming more aware of the risk they face and are looking to build defenses.
“A worrying observation is that even though many organizations are becoming increasingly aware of the risk, it often takes an emotional experience before real action is taken.” delivery of malware via a compromised website, or direct attacks against internet facing systems. Increasingly, we see a number of attacks derived from “cyber kit” that can be purchased on the open market. Unfortunately, there is no silver bullet which can address the variety of security threats that today’s businesses face. Therefore, strong defenses need to be built on the foundations of threat intelligence, predictive analytics, smart processes, and cyber forensics. Many businesses realize that their existing approaches, which are often heavily reliant on legacy products, are neither efficient nor are effective in managing risk. When clients engage us to help enhance their security, we will often commence with an assessment of the threat landscape – looking into the threats which are most pertinent to their business, and how those can be mitigated. Such an approach is not a one-off exercise. The assessment needs to be continually updated as the landscape evolves, using threat intelligence received from vendors, the security community, and open-source to keep up with known attack groups and techniques. After an initial assessment of the threat, we then recommend companies look at what enduring capability they need to be able to collect, manage and exploit this intelligence. It is essential to get the right teams in place, and give them the tools they need so that they
BritishAmerican Business NETWORK 2014, VOL. II
That said there are factors that lead to different security postures between industry sectors. For example, DDoS attacks have been a big issue for banks and online retailers, driving them to implement security controls to handle this threat. Manufacturing companies are less likely to be subject to a DDoS attack and therefore are unlikely to spend money on this type of defense. The oil and gas industry also have unique challenges, requiring specialized approaches. The OT that is central to this sector is not the same technology deployed in a bank or supermarket. The systems and environments are different and the attack surfaces vary. In summary, the key takeaways regarding cyber security are: first, today’s cyber security defenses are not about a strong perimeter. To ensure success, the strategy has to be based on the understanding that “bad actors” will get in. The objective is to block the infiltration of data. Second, Board members must take an aggressive approach to managing threat intelligence. It’s crucial that you know and act on the threats targeting your business assets as well as those aimed at your network technologies. Finally, no one strategy or tool can fully guard an organization against digital criminality. It’s the unification of smart processes, cyber forensics, and predictive analytics with threat intelligence that ensures full situational awareness. n
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F E AT U R E : C Y B E R S EC U R I T Y
TACKLING CYBER RISK : A COMPLEX MISSION
A
s we look back at the first half of 2014, it is clear that the number of cyber attacks against public and private organizations is on the increase. Another dimension is that these attacks – on your business – will originate from all parts of the world. Motivations vary – from stealing intellectual property, disrupting your business operations or harming your reputation. In some cases the aggressor lies in wait to execute a plan at a later date.
Nick Coleman Global Head of Cyber Security Intelligence, IBM Services n_coleman@uk.ibm.com
So what is the problem and what can you do about it? The challenge is that everyone has become a potential target and understanding what the attacker is trying to do and why they are doing it, how they mount the attack and sometimes a more difficult question – do I have the capability to deal with a cyber attack? Or have I got the appropriate cyber “hygiene measures” in place to defend myself? No Magic Bullet There’s no magic bullet to protect against cyber risk – it’s much more complex than that. A range of measures are needed – from creating the leadership and operation model for security, through to having the right technical countermeasures and intelligence within your network, all the way to educating employees and thereby creating a culture of security awareness within your organization.
Jonathan Sage EU Lead on Cybersecurity Policy, IBM Governmental Programmes jonathan.sage@uk.ibm.com
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A Continuous Process: No rest for the wicked! A state of the art approach to cyber security no longer just relies on the traditional methods of protecting your network such as anti-virus protection. Cybersecurity is more than any one individual step; it is a continuous process where you need to follow the cycle of: Learn, Monitor, Analyze, Decide and Respond. Today’s cyber threats require continual inspection and analysis of high volumes of dynamic data from sensors and other devices so that accurate, real-time insights can be gained into possible threats and system compromises. Understanding patterns and behaviors across diverse data streams from many channels is necessary to detect evasive attacks. Similar to a military operation, it is important to have a high degree of advanced “situational awareness”. A cyber attack can disguise itself to appear as normal user activity – hence the need to understand bigger sets of data. In the heat of battle of a cyber incident where humans cannot keep up with the pace of the threat, defenses need to be able to fuse information from a variety of sources, including real-time observations. Ideally these are then automated in order to adapt and respond to the threat dynamically so that business processes and productivity are not impacted.
Let’s work together! Public-Private Coordination Such real time analysis should also be supported through concerted and globally consistent action in both the public and private sectors. There is no one single action, or treaty, or piece of legislation that can be pursued to solve the issue. Wherever possible, national level responses should be internationally coordinated and globally consistent, especially given the global markets and resources that industry in general now relies upon. Perhaps the biggest cyber risk within an organisation lies in complacency. While you are never going to be able to have 100% security against the myriad of cyber threats out there, what you can do is implement and enforce security excellence where employees and partners are aware of the risks and how to address them. The culture needed also comes from the top-level management. So how does this relate to what’s happening in Europe? The European Commission is rightly concerned with differing levels of cyber preparedness across the EU. The Commission’s Network and Information Security (NIS) proposal is however deemed by many in industry to overreach in terms of mandatory incident reporting across a wide range of actors. Legislation alone which mandates reporting may well have the opposite effect to the desired outcome of increasing resilience, as it could create a “tick the box” compliance attitude and could divert resources away from the core challenge, which is how to respond to threats on the one hand and having the right level of preparedness on the other. The proposed Directive is likely to aim at assuring a minimum level of preparedness across the EU, combined with general awareness raising campaigns to achieve better consistency and pan European coordination. IBM is doing its part to help make progress via our own technical contributions and via participation in public-private initiatives such as Common Criteria and Trusted Technology Forum and we stand ready to engage on national and international policy initiatives and dialogues, just as we are able to support operational initiatives via our comprehensive array of security capabilities. n
BritishAmerican Business NETWORK 2014, VOL. II
WHEN ONLINE GOES OFFLINE: TOTAL INTERNET FAILURE
T
he subject of internet blackout risk receives relatively little attention. It is often drowned out by tales of the risks associated with state sponsored cyber crime and sophisticated malware. As a consequence companies could be in for a shock, at any point in the near future. I think that we have experienced an extremely unlikely and unusual period of stability of core internet services like routing tables and name lookups. This good luck has meant most organisations don’t take the threat of long-term internet outage seriously enough. I think one of the biggest IT risks that we face is the combination of capacity and complexity issues causing internet failures. Who pays for the internet’s utility bill? Organisations should be surprised that the internet works so well, rather than be surprised when it fails – given that no one body is responsible for making it work. This is only an issue because it has become normal to think of the internet as a utility such as power, telecommunications or water, where a service is paid for with contractually agreed service levels. Organisations do protect their connection to the internet, for example by using ‘dual pipes’ from two providers, but out of sight, the internet is cobbled together in a whole series of insecure, outdated technologies which are lashed together with the sweat and tears of network engineers. Spiralling out of control The internet is also dependent on numerous other factors which cannot be controlled by end users. For example, reliable power and access to cooling is needed and a global network of cables needs to be protected from being cut by construction machinery or damaged by fishing trawler nets. Then of course, there are risks caused by those acting maliciously – which has happened in the past. ‘Worms’ for example have spread rapidly across the internet, causing significant disruption. It represents a giant leap of faith for so many organisations to bet their business model on the internet, which is managed with so few formal controls. Ironically, it is also an endorsement for this ‘unregulated’ approach, as it appears to be more robust than highly regulated systems such as power or financial networks which have rare, but very significant outages.
internet traffic was created by machine-to-machine communication – the number and criticality of connections facilitated by the internet is far outpacing the resources dedicated to maintaining it. More and more data is being transferred by an ever more exotic collection of devices, from fridges to pacemakers. I believe that we will see substantial disruption to organisations and entire businesses failing through not appreciating that relying on the internet means relying on third party services for which there are no contracts and not even a clear owner. Quantifying the impacts I take no pleasure in suggesting that another item be added to the already daunting list of IT risks which need to be considered. However, heavily internetdependent businesses which have processes and procedures in place to respond to the internet failing for a number of days are currently likely to be in the minority. Have you taken the time to consider the impact on your business of an extended internet outage beyond your (or your ISP’s) control? It could be argued that organisations should celebrate the miracle that is the internet proving to be so robust for so long and press ahead with business as usual, but having contingency plans in place to survive a sustained loss of internet access is probably wise – from maintaining access to business critical information to interacting with customers and having appropriate insurance to cover losses. The internet is incredible, but this shouldn’t blind us to the fact that it isn’t a traditional utility and its prolonged failure is an IT risk. n
Stephen Bonner Partner KPMG U.K. +44 (0)20 7694 1644 stephen.bonner@kpmg.co.uk
Exponential growth versus linear growth The loads and complexity of internet usage is growing exponentially while the skills and capability to manage the systems is growing (at best) in a linear fashion. Last year, we passed the point where more than half of all
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I N D U S T RY I N S I G H T S
Making Big Data Work on the Front Line
T Sean Doyle Executive Vice President, Americas British Airways
he future success of any company will be defined by the quality of understanding of its customers. That understanding comes not only from the ability to analyze proprietary and secondary data effectively but also the ability to apply emotional intelligence to deliver personalized experiences. We are seeing companies move from a discussion about the merits of Big Data to the practical application of using that data to drive new efficiencies. Companies that have heavily invested in combining legacy systems and consolidating data warehouses are attempting to understand and act upon signals in the data. Being willing to test and learn based on those signals is critical if a business wants to differentiate and maintain a competitive advantage. At British Airways we are translating this into simple technology platforms such as enterprise applications loaded onto iPads to allow real time message delivery and instant feedback by front facing staff. Most large companies understand the theoretical advantages of investing in Big Data but unfortunately moving from theory to practice can be a real challenge as many of these businesses are inherently risk adverse. An important first step is to ensure data analytics and innovation are seen as horizontal functions across the
business and not vertical silos. A second important step is to develop a strategy for stakeholder management. The CFO, CMO and COO will all have very different concerns, anticipating these can vastly reduce time to market. A possible approach is to look at how data can be used to benefit the enterprise in three different ways. The first is pure cost efficiency achieved by being able to see an end-to-end view of a single customer, allowing for faster service recovery and reduced duplication of communication efforts. The second is product and service development, smart use of data allows the company to solicit feedback to improve existing products and better predict what they may want in the future. The third is marketing and loyalty, developing highly tailored messages delivered at the right time, in the right way to the right audience increases the likelihood of a customer responding to an offer, seeking you out in the future and recommending you to a friend.
Helping SMEs Drive Growth Through Digital Skills
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s Eric Schmidt and Jared Cohen said in their book, The New Digital Age, the internet is among the few things that humans have built that they don’t fully understand. This continues to be true. The internet is evolving – we hear daily about new ways it can empower us, improve our lives and make the world a better place. However, although online access undoubtedly provides a great opportunity for business, it is not evenly taken up. The first ever Lloyds Bank UK Business Digital Index, published in April this year, showed that half of UK SMEs do not have a website and of those that do, only around a third are using it to do more than present their basic company information, products and services. Looking at the numbers, this translates to as many as 1.7 million organisations in the UK that have a very low level of digital capability and do not have any web or social media presence. At Lloyds Banking Group, we recognise we have a huge role to play in helping individuals, businesses and the community in improving their digital skills. We created the Index to measure progress and to help the digital skills charity Go ON UK, of which we are a founding partner, to help meet their overall objective of making the UK the world’s most digitally skilled nation.
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Although the UK is one of the most digital savvy places in Europe, it’s clear we still have some way to go to meet our digital aspirations. Beyond being connected, there is a fundamental need for better use of the possibilities of web-based applications and emphasising the benefits that the internet can bring. A big challenge is attitudinal as a consequence of not understanding the potential benefits; communicating the upside to SMEs – whether it’s saving time, increasing revenue or having deeper customer relationships is critical. To help get these benefits across, we are building a network of digital champions to help SMEs, friends, family and other members of the community realise their potential and the full power of the internet. Working with a wide range of partners such as Go ON UK and the Government is part of our commitment to extend digital inclusion and improve the digital skills of individuals, charities and businesses.
Miguel-Ángel Rodríguez-Sola Group Director for Digital, Marketing & Customer Development Lloyds Banking Group 020 7626 1500 miguel-angel.rodriguezsola@lloydsbanking.com
BritishAmerican Business NETWORK 2014, VOL. II
Learning from Nature: Adapting To The Environment
W Nina Glass Consultant, Eric Salmon & Partners nglass@ericsalmon.com
hen you enter a new geographic market, what are the most important attributes you look for in local senior management, apart from technical ability? It should be: • Understanding of the culture and mores of the parent company; • Effective inculcation and immersion in the new market; • Ability to fit in with both the local subsidiary market and parent company market. History is littered with examples of failed forays into foreign markets; even the ones you think should pose no problem. For example, British retailers have a patchy record of start-ups in the USA (Tesco, most recently) and it’s hard not to draw a conclusion that they didn’t place the right country management who could help the brand adapt rather than invade. And it’s not just Brits in the US. Many entrants to France have crashed and burned at one time or another. Home Depot faced a $160 million charge pulling out of China. And Wal-mart famously abandoned the German market after it struggled to impress Bentonville on Berlin. So where did they all go wrong? The thinking for too long has been that “it works over here so they’ll
love it over there.” But do they? Before imposing something on a local population it pays to understand: •D o they want it? •C an they afford it? • Can country leadership manage to bridge local to parent company? If the answer to any of the queries is ‘no,’ then a rougher ride can be expected. Assuming, though, that the first two questions prompt a ‘yes,’ then the lynchpin lies in appointment of the right people to steward the business. In other words, best chance of success stems from appointing leaders who can not only fill the brief technically but also can navigate both local and parent contexts and effectively link the two. While sector and functional knowledge is critical, it’s as important that your local management knows what makes the local market tick and even more so that they also know how business works for you back at your head office, in the USA or UK. Bringing together two, often contrasting styles is key and gives the best chance of success. Believe me, I’ve been there.
Support Your Export Distributors: Localize Your Website!
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istributors can be a mixed blessing for exporters: they help you put feet on the ground in your export markets, but they can also misrepresent your brand or lack the marketing zeal needed to really drive your sales. Even the best distributors need a helping hand and one of the most effective ways is to build your company’s presence online in your export markets. Building a localized website solves 4 key export challenges: • Controlling and building brand awareness • Supporting your local distributor • Coordinating multiple distributors • Generating new leads Today’s consumers and businesses want to know the company behind the product, so brand ownership and management has never been more important. In your home market, you can rely on your reputation, word of mouth and your established website. In export markets, your local website has to work overtime to build brand awareness. You can’t rely on your distributor who may lack the resources or serve multiple products. Brand visibility is essential today and the place where businesses look for you is online. Tip: Protect your brand by purchasing domains of main target countries. If you don’t own them, your competitors or distributors can.
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Some 70% of B2B product sourcing starts with an online search. Before signing up, your prospects are likely to check out your website and social media. Show them you know and care about their market. Providing local marketing materials and generating enquires through your local websites, supports your distributor: They can focus on nurturing leads and after sales support. Tip: Show you care about the local market: provide case studies, testimonials and marketing documentation that is relevant to the local market. Using localized websites allows you to coordinate and optimize multiple distributors: harmonizing product launches and pricing is fundamental to managing multiple distributors. Tip: Always use local currencies but keep exchange rates updated – your clients will notice otherwise. Generating new leads in export markets only happens when the websites are localized. That includes local search engine optimization: Make sure your target clients can find you locally. Just because they can find you easily in your home market doesn’t mean they can find you in your export market. Tip: Build a strong local community via social media to drive traffic to your website.
John Worthington Managing Director ibt partners jw@ibtpartners.com
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I N D U S T RY I N S I G H T S
The Partnership Revolution: One Plus One Is Greater Than Two
C Claire Farrington Partnership Manager, Grange Hotels claire.farrington@ grangehotels.com
onsider this: Some of the business world’s greatest success stories have been engineered by two or more entrepreneurs possessing complementary skills. Take Apple. Tech genius (Steve Wozniak) + marketing mastermind (Steve Jobs) = one of the world’s top brands and market leaders. It seems every industry is looking at strategic partnering and co-branding to increase reach and overall sales, offer something new, boost awareness and inspire consumer confidence. These tips are just a guide but, as City A.M. stated at the beginning of the year: ‘Partnerships may be the big trend in 2014’. I, for one, am not disagreeing with them. Choose Pick a corporate partner who shares your company’s vision and values, and the benefits can go well beyond simple co-branding, joint marketing and projects. The motives for each partner can be different. The overall objectives and methods, however, need to be the same. There are obvious links to be aware of – the companies’ products and/or services, customer bases and future potential target audiences. Create Discuss both corporate objectives and agree on priorities. Take time to discuss your company's vision and mission with your new partner and vice-versa to develop a joint
vision and mission. Make sure each partner’s needs and expectations are addressed. Sometimes a partner is sought for capital, sometimes for expertise, sometimes for connections. These are not always expressed, yet they remain as an underlying expectation. Setting out clear guidelines at the start of the partnership means both sides know where they stand and what to expect, allowing for a clear and successful relationship to flourish. And a partnership agreement should be drawn up and reviewed, ideally, on a quarterly basis. Communicate I make sure that staff at all levels, not just senior management, at Grange Hotels know about our partnerships and, therefore, are enrolled in them and understand why we are working with them. Be sure to make the most of any joint marketing activities as there’s double the audience. It’s also good to be seen ‘talking’ and supporting each other on all social media platforms, that way your clients, stakeholders and followers know that there is such a strategic relationship that they could, depending on the context, take advantage of. The result: a hybrid of skills, consumer bases and services result in quicker, sometimes, slicker execution and an enhanced image. Go forth and collaborate!
The Collateral Complications of International M&A
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t firms heading towards a merger, acquisition, or divestment, executives tend to maintain a laser-like focus on the deal itself: What is the share price? What are the terms? But these events don’t happen in a vacuum. They require a long list of compliance and operational actions, big and small. And when deals happen across multiple jurisdictions, the operational and compliance fall-out also multiplies. When we advise clients contemplating a deal, we help them create a roadmap of pre and post-deal operational changes and compliance hurdles. It’s imperative that they begin this planning process from the outset – you never want to find out on the eve of a major acquisition that your plans for workforce reductions at the foreign firm you’re buying conflict with local labor law. And that’s just one potential complication. In a deal that transfers most or all of the assets of one company to another, for example, you’ll have to contend with local rules for winding down the shell entity. If you’re purchasing a foreign entity as is, you still may need to update its directors and registered address. The devil is often in the details, and there are a lot of them. From a compliance and operations perspective, the most challenging aspect of these events is frequently HR. There are little things: Will a change in company
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name or location affect the visa status of any expat employees? And there are much bigger things: The EU has strict TUPE – Transfer of Undertakings (Protection of Employment) – laws to ensure that workers retain their employment rights when they’re transferred to a new employee. They require close consultation with employees and union representatives on both sides of a deal. And of course there’s the question of workforce compatibility. The culture clash between the management of German automaker Daimler AG and that of the American firm Chrysler, unanticipated by senior executives, famously contributed to the failure of DaimlerChrysler. But if you do successfully plan and execute around an international deal, the payoff can be enormous. We should know. Radius Inc. was born this spring out of a merger between the U.S. firm High Street Partners and UK-based Nair & Co. It’s already bearing fruit.
Jason Martindale Senior Director, UK and Europe, Radius jason.martindale@ radiusww.com
BritishAmerican Business NETWORK 2014, VOL. II
Hydraulic Fracturing In The UK: What’s The Latest?
F Caroline Almond Senior Associate Squire Patton Boggs +44 121 222 3544 caroline.almond@squirepb.com
racking for shale gas in the UK remains topical, particularly now previous estimates of UK shale gas reserves have been revealed as far too low. Those against fracking cite significant environmental risks whilst the proponents (including the UK Government) argue that it is vital the UK embraces this opportunity. Reports abound from both sides. A March 2014 report “Are We Fit to Frack?” by conservation organisations contained numerous recommendations including setting up “no frack zones” around conservation areas. The Chief Executive of the United Kingdom Onshore Operators Group retaliated that the report contained critical inaccuracies and highlighted that the industry already has to comply with 17 European Directives and obtain up to 9 separate UK environmental permits involving a multitude of regulators. UK permitting requirements for fracking are complicated and the Government is determined to streamline them. Recent reports by Bloomberg estimate 6 months plus to obtain UK fracking permits while in Texas it only takes 7 - 14 days. The UK permitting problems helps explain the lack of uptake, despite the known shale gas reserves and the tax breaks offered by the Government.
To add to this are growing fears that after obtaining all the necessary permits, an operator will be faced with landowners (who in the UK also own the sub-soil beneath the surface of their land) invoking the law of trespass to prevent shale exploration going ahead without their consent. The UK government countered (as part of the Queens Speech on 4 June 2014) that it will consult on amending current trespass laws to ensure that these are not a barrier to fracking. The public remain to be convinced – despite the Government’s latest incentive strategy under which operators pay £100,000 in community benefits at exploration phase, per well-site, and 1% of revenues from production wells go to communities that host them. 2014 has been cited as the year UK shale gas exploration will make significant progress towards becoming a viable resource. However with the biggest potential UK shale gas operator still describing a 5-year lead-in time before viable exploitation of shale gas, it looks like we have a long road ahead.
Are You Using 084 or 087 Numbers? If So, You May Want To Read This
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n Friday the 13th of June, it became illegal for businesses to present customers with costly non-geographic numbers to contact them. The government are working towards putting an end to expensive premium 084 and 087 numbers for customers calling to consult their service or product provider. The ruling is part of “The Consumer Contracts Regulations 2013”; it helps prevent customers having to pay more than standard rate charges to consult providers. The ruling includes an exception that affects a number of sectors that have been classified as “better governed by sector specific rules”. These include gambling, package travel, timeshare and certain financial services. Businesses using 084 or 087 numbers will have to switch to either a geographical number (such as 01 or 02) or, if they still require the technological benefits of a non-geographic number, an 03 number. A Better Customer Experience The change in regulation is designed to protect customers from paying over the odds for a level of service that should be provided by their initial agreement.
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It’s a real drive towards delivering better levels of customer service and labels 084 and 087 numbers as ‘unfriendly’. Companies using these numbers for other areas of the business should begin reviewing the reasons they utilise them; if the reasons only benefit the business and not the customer or prospect engaging the company, then a review of your options should be on the agenda. Businesses have seen dramatic increases in inbound enquiries and levels of marketing campaign engagement, not from re-inventing their propositions and marketing content, but from getting their inbound strategy “customer friendly”; this all starts with getting the right number in place. Review Your Options With numerous technologies available in the marketplace, it makes sense for businesses to regularly assess their inbound setup. Whether you’re still using 084 or 087 numbers, looking to improve the customer journey or track marketing campaigns more effectively, ensure you’re aware of your options and you’re getting the most value from your budget.
Keith Lourie Unified Communications Consultant, IP Solutions keith.lourie@ipsolutions.co.uk
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AU T H O R S P OT L I G H T INTERNATIONAL FINANCE REGULATION: THE QUEST FOR FINANCIAL STABILITY Effective financial regulation inspires market confidence, stability, consumer protection, and a reduction in financial misconduct and crime. International finance expert Georges Ugeux explains that while individual nations have reformed domestic regulations, these combined measures are still insufficient to prevent future financial crises. His new book, “International Finance Regulation: The Quest for Financial Stability” WILEY; 2014), demonstrates that global financial stability is managed in a fragmented and incoherent manner, and offers a model for strategic international regulation. Finance consistently operates within an expanding global paradigm, and an overarching regulation scheme is becoming increasingly necessary for sustainable growth. “International Finance Regulation” focuses on the inspirations behind regulation and examines the global risks and consequences of fragmentation. With three decades of experience in the legal and economic aspects of international business, author Georges Ugeux is uniquely positioned to provide counsel from the perspective of a top global authority. Ugeux offers insights into the lessons learned from the recent financial crises, and shows why the Georges Ugeux current financial laws, rules, and risks are often CEO Galileo Global seemingly overbearing. Advisors
Caroline Arnold’s “Small Move, Big Change: Using Microresolutions to Transform Your Life Permanently” is here to rescue your failing New Year’s resolutions with a unique approach to following through with goals. Rather than creating vague, wistful resolutions to “get fit” or “be organized”, the key to accomplishment are “microresolutions”: small, attainable goals that you have no excuse to avoid but will slowly engrain themselves as habit. By accumulating microresolutions over an extended period of time, these small adjustments transform into big changes. Arnold makes practical use of behavioral science to weed out habits that undermine our goals, and draws on personal examples of her life as one of the most sought-after tech leaders on Wall Street. A wife, mother, and Wall Street innovator, Arnold uses her own successes and failures as case studies. Contrasting her career success and her personal resolution failures, Arnold recounts how by analyzing her own behavior she was able to engineer her resolutions to succeed every time, from losing weight to improving key relationships. She also presents fascinating research on willpower, habit, and the outsize impact a small behavioral change can have Caroline Arnold on weight, fitness, relationships, career, health, Managing Director sleep, spending, organization, and punctuality. n Goldman Sachs
BEST PRACTICES OF THE BEST DEALMAKERS:
THE TALENT EQUATION
VALUABLE GUIDANCE FROM 51 OF THE MOST ACTIVE MIDDLE MARKET M&A PRACTITIONERS
A data-driven approach to HR can help companies make smarter decisions about their most important asset: their people. In the wake of the greatest shock to the labor market since the Great Depression, companies are faced with looming skill shortages, retention concerns, and questions regarding the effective composition of their workforce. Along with co-authors Matt Ferguson (Careerbuilder) and Lorin Hitt (Wharton School), Prasanna Tambe (NYU’s Stern School) commissioned a landmark big data study of more than 2,700 employers and 33 million resumes to find the relationship between market performance, education attainment, and employee tenure. The Talent Equation explores: • The ROI of increased education levels and retention rates • The benefits of continuous recruitment and talent pipelines • The growth of the recruitment technology market and how workforce analytic tools are changing talent acquisition • The importance of reducing long-term unemployment through training and reskilling. Smart and timely, “The Talent Equation” also incorporates case studies from leading brands – Prasanna Tambe both global and domestic – that further illustrate Associate Professor staffing issues facing executives today. n NYU Stern
What are the most important elements of successful dealmaking? Is it education, experience, or instinct? What strategies are tried and true? What tactics are working most effectively in the current dealmaking climate? Merrill Datasite together with The M&A Advisor presents ‘The Best Practices of the Best Dealmakers series – Complete First Edition’. Building it’s foundations on the principle that there is no “one size fits all” in M&A strategy it delivers key industry insight from over 50 leading dealmakers including buyers, sellers, attorneys, accountants, investment bankers, and consultants who have mastered the mechanics and the more subtle human aspects of making a deal happen. Featuring video interviews, the contents of the electronic version of this book follow the progression of the M&A life cycle, from the definition of the M&A acquisition strategy through target identification, due diligence, negotiation and integration, and features a special section on Distressed Investing, Restructuring and Turnarounds.
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SMALL MOVE, BIG CHANGE
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POLICY AND FORUMS
POLICY UPDATE THE LATEST ON THE TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP A year after negotiations for a Transatlantic Trade and Investment Partnership (TTIP) were launched, we are receiving continued interest in the prospective agreement from BAB members and also members of the BABC. We have therefore continued to take a leadership role in promoting the TTIP, which could bring potentially massive benefits not only to our members but also to the UK, US and EU economies at large. Public Briefing on Investment in TTIP with EU Commissionner Karel De Gucht In June, we convened a public briefing in London on the investment dimension in TTIP in conjunction with partners such as Thomson Reuters. We were joined by the EU Trade Commissioner, Karel de Gucht, and a panel of experts from Herbert Smith Freehills LLP, BASF Group, Northrop Grumman Corporation, The Dow Chemical Company, and Thomson Reuters. Investment protection was described by the Commissioner in his keynote remarks as “a basic principle of the law”, ensuring protection against discrimination and expropriation and providing for fair and equitable treatment of investors. The event was endorsed by the UK Trade Minister, Lord Livingston, who noted that the Commission consultation on Investor State Dispute Settlement (ISDS) was an excellent opportunity for public debate on an important issue.
Above: EU Commissioner for Trade, Karel De Gucht
Written Response to the European Commission’s Public Consultation on ISDS Following our event on investment in TTIP, we submitted our written response to the European Union’s public consultation on investment protection and ISDS in TTIP in July, stressing the importance of investment for the transatlantic economy. We underlined that investment protection and ISDS provisions should represent an important part of TTIP, especially given the opportunity that TTIP presents for setting new benchmark conditions for investment globally as well as strengthening investment protection across the Atlantic.
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Above: TTIP Road Show, Glasgow. Left to Right: Linda Hanna, Senior Director, Strategy & Economics at Scottish Enterprise Iain McMillan CBE, Chairman SNABC; The Rt Hon Ken Clarke MP, Minister without Portfolio; David Mundell MP, Parliamentary Under-Secretary of State for Scotland; Jeffries Briginshaw, Managing Director, BritishAmerican Business London; Neil Amner Partner, DWF LLP
Continuing TTIP Road Shows Our TTIP Road Shows around the UK have continued to build momentum, highlighting to companies how they can benefit from a successful trade and investment deal between the EU and the US. In recent months, we have visited Cardiff, Glasgow (with a keynote speech from the Rt Hon Ken Clarke MP), Birmingham and Liverpool, with Edinburgh and Sheffield already scheduled for the Autumn. Our expert panel of speakers has included SMEs, MPs and members of Government, and continues to address issues such as: • Current status of the negotiations and what companies can gain from an agreement; • Success stories showcasing investment between the UK and the US; • Current government trade promotion initiatives and support relevant to US markets. To register your interest for the road shows, please contact Emanuel Adam, Policy and Public Affairs Manager at BritishAmerican Business at eadam@babinc.org or +44 (0)20 7290 9885. Update from the UK Government On 11th July, 2014, the UK government published its official response to the House of Lords EU Committee’s report on TTIP to which BritishAmerican Business has actively contributed by providing substantive written evidence to the House of Lords in October 2013. The Government response sets out the case for TTIP and the importance of the deal to the UK; addresses some of the myths and misconceptions about the deal; and covers the specific recommendations and observations made by the Committee. We will continue to be active in our TTIP initiatives in the months ahead, alongside other policy priorities which we have been focusing on, including: tax, aviation policy, and immigration among others. n
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AN UPDATE FROM OUR LAW FORUM
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John Cater Forums Programme Manager BritishAmerican Business +44 (0) 20 7290 9874 jcater@babinc.org
he longstanding legal community within the BritishAmerican Business membership is one of our most valued industry groups. Indeed, the BAB Law Forum under the chairmanship of Rafi Azim-Khan, Partner, Pillsbury Winthrop Shaw Pittman LLP, has gone from strength to strength in capturing this expertise throughout our eventing and policy output. There is also a high level of cross fertilization of ideas for and with other forums. Legal perspectives are vital to many of our events – and we have been fortunate enough to welcome Law Forum members to speak at other events in our programme including sessions on nuclear energy, cyber security, social media and unconventional gas. At our recent Transatlantic Trade and Investment Partnership (TTIP) event on Investor-State Dispute Resolution (ISDS), we were pleased not only to be joined by EU Commissioner for Trade, Karel De Gucht, but also by two distinguished lawyers who spoke on our panel of expert speakers: Christian Leathley, Partner, Herbert Smith Freehills LLP, and Wolf Von Kumberg, European Legal Director and Assistant General Counsel, Northrop Grumman Corporation. Our thanks also to Herbert Smith Freehills for sponsoring the event. Law Forum specific events have tended in recent years to focus on smaller roundtable discussions (often aimed specifically at attracting particularly specialised groups such as Chief General Counsels), with issues including the legal services act, press regulation, shareholder activism and the UK Bribery Act. These have been practical sessions led by industry leading figures tackling some of the most challenging issues impacting upon the BAB and wider transatlantic business community – we haven’t been afraid to tackle contentious issues, including the aforementioned UK Bribery Act, Sanctions and the UK-US extradition treaty. Over the next few months, our members at the intersection of international legal and business communities will be looking forward to the Global Law Summit, which will take place in London in February 2015 (visit globallawsummit.com for more information). It promises to be a ‘Davos’ for those with an interest in interfaces between law, commerce, and government. Watch this space as we contribute our ideas! Purpose of the forums BAB has a large and diverse membership committed to pursuing their transatlantic business priorities.
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This is achieved through opportunities provided by BAB networks and event platforms, sometimes in collaboration with other like-minded businessfocused organisations. The forums play a vital role in developing the networks, policies, themes, events and other activities that are a central component of BAB’s ongoing value to its members. Activities are grouped around three themes – Networking, Intelligence and Advocacy. BAB has a unique, cross-sector transatlantic character that presents a strong basis for engaging with governments and advocating effective, evidencebased and strategic approaches to the wide range of regulatory challenges faced by transatlantic business on a daily basis. These challenges are both bilateral (eg. between the UK or EU and the US), and also, increasingly, in the third country marketplace (eg. other than in the US or the EU Single Market) as our members seek to find common cause in establishing a global level playing field for business. As a network based on insights, expertise, and the cross-pollination of ideas, BAB Forums are also a catalyst for the valuable relationships that BAB seeks to nurture and sustain as intrinsic to its mission and heritage. n
Upcoming forums include: Aviation Forum Friday 7 November 9:30am to 10:30am At BritishAmerican Business’s Offices Law Forum Tuesday 2 December 8.30am to 9.30am At Pillsbury Winthrop Shaw Pittman LLP Taxation Forum Thursday 4 December 8:30am to 9:30am At Deloitte LLP HR & Employment Friday 5 December 8.30am to 9.30am At Laytons Solicitors All members are welcome to attend these meetings, please contact John Cater to register your interest.
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DATA LAWS UPDATE – FURTHER CHANGES AND NEW INITIATIVES FOR INTERNATIONAL BUSINESSES TO NOTE
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n my earlier Network article, “A ‘Perfect Storm’ Of Data Law Changes”, I highlighted the huge number of factors that were combining in an unprecedented way and that would require all businesses (whether or not “tech”/“web” companies and whether US, EU or beyond) that operated websites, used customer, marketing, employee or partner data to urgently review what they were doing/planning. In the past year, the need for urgent review and action has in fact increased. For example, the threat of “nuclear” fines of 2% of global turnover/ revenue for breach of data privacy/protection (DP) laws has not gone away but rather has increased to 5%. Transfers of data across the Atlantic and internationally has come under the spotlight of enforcers and previous solutions (such as Safe Harbor and Model Clauses) have been thrown into doubt (more detail below). Regulators have been hiring larger teams to pursue companies more aggressively and we have now seen more frequent use of six figure fines across the EU. This is all before we are hit with the new DP Regulation (which will bring in numerous requirements over and above the current DP Directive). Increased Fines & Enforcement As a reminder, businesses need to note not just a threat of possible new fines but the fact we already now have significantly increased fines. Fine levels have moved from minor irritant category (£5000) to very serious (up to £500,000 in the UK, per breach). The EU regulators have also increasingly thrown their weight around, (e.g. a recent fine of £440,000 in the UK and similar six figure fines in Spain). Fines in France, the Netherlands and Germany have been equally significant and regulators have recruited further enforcement staff. Worse Fines, Audits to Come However, more is to come. As mentioned above, new fines of 5% of global revenue for DP law breaches are part of the new Regulation, which will also increase the risk of spot checks/audits by regulators throwing up breaches. Some enforcers have announced they will be ramping up audits/company visits. The Regulation is widely expected to be implemented by the end of next year (if not sooner).
So what exactly is the “best” solution for global companies needing to handle and transfer personal data across jurisdictions? Any solution used by a company, even up to just a year ago, may well now be out of date. Disadvantages associated with model contract clauses, in addition to recent serious concerns over the EU/US Safe Harbour regime mean that Binding Corporate Rules (“BCRs”) are becoming increasingly popular among multinationals. They are also heavily promoted by the Commission as the preferred route and the “Privacy by Design” standard. This increased further as the EU and APEC regulators launched a practical checklist and comparative tool (the “Referential”), which sets out the respective requirements when seeking approval of BCRs and APEC region’s version of BCRs i.e. Cross-Border Privacy Rules (“CBPRs”). The Referential presents itself as a pragmatic means of “double certification” under both systems. In other words, in complying with the checklist, policies/procedures can be developed which should help you be compliant across the EU and APEC.
Rafi Azim-Khan Chair, British American Business’s Law Forum Partner IP/IT & Head Data Privacy, Europe, Pillsbury Winthrop Shaw Pittman LLP rafi@pillsburylaw.com
So What Should You Be Doing Now? Companies should urgently revisit what they are doing (what procedures, policies, standards and documents they are using, what agreements they are entering, how they advertise/market, use the web or databases, train staff, etc.) to check if they are as compliant as they think they are. The storm of new laws, new fines and new enforcement, with even more to follow, should rightly fast-track this to the top of the boardroom agenda. Every cloud has a silver lining, however. The good news is that with some proactive steps (including using the new solutions) you can reduce risk and future headaches. The key is to be able to show real steps are being taken and heads are not in the proverbial sand. n
International Transfers of Data Another area under the spotlight is that of international data transfers from Europe to the US and beyond.
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EVENT HIGHLIGHTS: LONDON
Spring Conference 2014 – Innovation & Disruptive Technology: Transforming our Business World On Wednesday 14th May 2014, BAB held its annual Spring Conference at the BT Centre. The conference featured keynote addresses from Ed Vaizey MP, Under Secretary of State for Culture, Communications and Creative Industries, and Gerard Grech, CEO, Tech City UK. Also showcased were companies which have helped to shape innovation and disruptive technology, including: Songkick, McKinsey Global Institute, iMakr, BAE Systems Applied Intelligence, Shell, Baker Botts, BT Global Services, Open Data Institute, Dow Jones and ARM.
Above: LTR: Nicholas C. Walsh, BAB President & Vice Chairman, AIG Property Casualty Senior Vice President, AIG; Ed Vaizey MP, and Jeffries Briginshaw, Managing Director of BAB in London.
Above: Gerard Grech, CEO, Tech City gives his keynote address on “The case for Britain as an innovation centre”
Above: Guests network ahead of the first panel on: “Predicting the future: What technologies are truly big and how can business leaders recognize, and harness their potential?”
Above: Panel 2 on “Managing disruption: Responding effectively to disruptive changes”. Left to right: Alex Mason, Special Counsel, Baker Botts; Thijs Jurgens, Vice President of Innovation, Shell; David Bailey, Chief Technical Officer, BAE Systems Applied Intelligence Cyber Security Business; Dr Nicola J. Millard, Customer Experience Futurologist, BT Global Services
A SPECIAL THANKS TO OUR CONFERENCE SPONSORS:
“BAB Conferences are outstanding in terms of content, organisation and high level participation. I have never failed to be impressed by the calibre of the speakers and have found the whole experience very worthwhile.” Christopher Fraser OBE, Strategic Counsel, BNY Mellon
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Annual Corporate Citizenship Awards Dinner, at the Merchant Taylors’ Hall, honouring Peter Hancock, CEO, AIG and Peter Sands, Group CEO, Standard Chartered BritishAmerican Business brought together business leaders from both sides of the Atlantic at its Annual Corporate Citizenship Awards Dinner at the Merchant Taylor’s Hall in London on 12th June. Dominic Jermey, the recently appointed Chief Executive of UK Trade and Investment, presented BritishAmerican Business’s corporate citizenship awards for 2014 to Peter Hancock, CEO, AIG, and Peter Sands, Group CEO, Standard Chartered PLC. As part of the core executive team that led the turnaround of AIG, Peter Hancock is committed to making AIG the most valued insurer in the world in the eyes of its many constituents, and to using AIG’s long-standing risk expertise to enable greater security and prosperity across all levels of society. As Group Chief Executive, Peter Sands led Standard Chartered Bank through the financial crisis, maintaining a focus as a bank which fulfils its brand promise - Here for Good - and which is committed to society through sustainable finance, community initiatives and financial inclusion.
Above: Guests networking in the beautiful courtyard of the Merchant Taylors’ Hall
“I am pleased to accept the Corporate Citizenship award from BritishAmerican Business. At AIG, we have benefitted greatly from our close engagement with BAB, and from the excellent foundation it provides for building relationships among members on both sides of the Atlantic”, Peter Hancock, CEO of AIG Above: Peter Sands gives his acceptance speech
Above: LTR: Dominic Jermey, Peter Hancock, and Nicholas C Walsh, President of BAB and Vice Chairman, AIG Property Casualty, Senior Vice President, AIG
WITH THANKS TO OUR SPONSORS PLATINUM SPONSORS AIG Property Casualty AON Ascot Underwriting Deloitte Goldman Sachs Marsh UK Standard Chartered Willis Group Holdings
GOLD SPONSORS Evercore Lockton Companies EY McKinsey & Company Norton Rose Fullbright Sullivan & Cromwell
BritishAmerican Business NETWORK 2014, VOL. II
SILVER SPONSORS AlixPartners Citi Deutsche Bank Philip Morris Limited Wells Fargo
“We strongly support the work done by British American Business in promoting free markets, a level playing field and businessfriendly government policies for international business. I am therefore delighted to accept this award on behalf of my colleagues at Standard Chartered”, Peter Sands,Group CEO, Standard Chartered
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EVENT HIGHLIGHTS: LONDON
Women’s Forum: “The Changing Face of Leadership – Profiling the 21st Century CEO” Sponsored by Hays and hosted by the Grange St Paul’s Hotel On Thursday 22nd May 2014, our expert panel discussed what makes an inclusive leader and how such attributes can add value to a company. Speakers included: Nicolas Aubert, Managing Director for the UK and Israel, EMEA, AIG Property Casualty; and Cora Lynn Heimer-Rathbone, Partner, Mercer Leadership & Organisation Performance.
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Networking Reception hosted by the Deputy Chief of Mission of the US Embassy at her Residence Sponsored by HCA International, Lockheed Martin, and Wells Fargo On Wednesday 4th June, we were delighted to be hosted by Elizabeth Dibble, the Deputy Chief of Mission of the US Embassy in London at her official residence at Wychwood House, Kensington. The above photo features (from left to right): Jeffries Briginshaw, Managing Director of BAB in London; Elizabeth Dibble; Jim Johnston, Executive Vice President, Regional President for EMEA, Wells Fargo.
London Insight: “Disunited Kingdom? The Scottish Referendum & Our Place in Europe”
Summer Networking Reception at Shakespeare’s Globe
Hosted by Squire Patton Boggs On 18th June, our panel of experts considered the implications of the results in the Scottish Referendum and the UK’s future role in the EU. Speakers included: Brian Groom, UK Business and Employment Editor, The Financial Times; The Rt Hon The Baroness Liddell of Coatdyke; and George McGregor, Group Head of Public Affairs, Interel.
Hosted by the Globe Theatre On 10th July, we were delighted to be hosted for an evening of networking, drinks and canapés at Shakespeare’s Globe, the iconic London venue on the banks of the River Thames. Guests were able to network in the atmospheric surroundings of the Globe’s under croft, directly beneath this famous playhouse’s stage making a fantastic setting for our last major networking reception before the summer break.
BritishAmerican Business NETWORK 2014, VOL. II
Re ce n t B u s i n e ss a n d G ove r n m e n t Le a d e rs a t o u r Lo n d o n Eve n t s Policymaker Roundtable with Anthony Gardner, US Ambassador to the European Union: “From the Outside Looking In – Sustaining Competitiveness as an Investment Destination”
CEO Roundtable with Jeff Weiner, CEO, LinkedIn: “The Future of LinkedIn and the Economic Graph”
Policymaker Roundtable with Anthony Foxx, U.S. Secretary for Transportation
CEO Roundtable with Craig Kreeger, CEO, Virgin Atlantic: “The changing role of a challenger brand”
Additional London Events »» Business Briefing: “Ukraine – The Impact for Transatlantic Business” »» TTIP Roadshow, Birmingham: “The US-EU Trade Negotiations and the Coalition for Transatlantic Business” »» TTIP Road Show, Liverpool: “The US-EU Trade Negotiations and the Coalition for Transatlantic Business“ »» Business Briefing: “TTIP and the Investment Dimension: What is the State of Play?” »» President’s Lunch
S p e c i a l Th a n ks to O u r Re ce n t Eve n t S p o n s o rs a n d H o st s Hosts
Sponsors
>> Citi >> G range St Paul’s Hotel >> G rosvenor House A JW Marriott Hotel, London
>> K ing & Spalding >> K PMG >> M cKinsey & Company >> S hakespeare’s Globe >> Squire Patton Boggs >> T he Law Society of England and Wales >> T homson Reuters
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E V E N T H I G H L I G H T S : N E W YO R K Business Briefing: New Energy Prospects — Shaping the Future of Commerce Sponsored by National Grid and hosted by McGraw Hill Financial, our panel of experts led a discussion on the future of the US energy market, alternative fuels, and creative solutions to fuel demands. The panel included Ken Daly, President of National Grid New York, Chuck Imhof, Staff VicePresident, Delta Airlines, John Kingston, Director of News, Platts, and Eric Roston, Sustainability Editor, Bloomberg.
Ambassadorial Briefing with Sir Peter Westmacott, KCMG, LVO, British Ambassador the United States
Rooftop Networking Reception
BritishAmerican Business was delighted to host, together with the British Consul General in New York, Sir Peter for a briefing on the outlook for global affairs, sponsored by KPMG. Sir Peter touched on a number of regional and global issues, while responding to member questions and outlining current foreign policy goals.
We welcomed members to TOWN Residential’s rooftop space in Chelsea over-looking The High Line for a spring networking reception. Guests were treated to a special exhibit of jewelry from “Downton Abbey” as they were networking with new and existing members.
Inaugural Pub Quiz Members Gathered at The Churchill for a raucous night of trivia, networking and camaraderie. Congratulations to our first-place team from CIT, our second-place team from PwC, and to Standard Chartered for best team name (“Fish & Chicks”). Next quiz is in November!
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Recent Business Leaders at our New York Programs CEO Roundtable with Dan Glaser, CEO and President, Marsh & McLennan Companies: “Managing Risk, Resilience, and Return in a Transforming Landscape”
Additional New York Programs >> Networking Reception and Exclusive Photography Exhibit
at Paul Stuart >> Women’s Forum: “The Balanced Board: The Future of
Corporate Leadership” >> E uropean-American Chamber of Commerce Annual Spring
Social at The Central Park Boathouse >> B ABC Annual Transatlantic Business Conference 2014 —
Building Platforms for Growth & Success: Key Trends, Game-changers and Opportunities in the Transatlantic Marketplace
CEO Roundtable with Stephen Schwarzman, Chairman and CEO, Blackstone Group: “The Future of Finance”
>> Forum: Competing Effectively in a Globalized Economy >> W orld Cup Networking Reception
CEO Roundtable with Peter Grauer, Chairman, Bloomberg: “Embracing Contradiction in the Development of Next Generation Leadership”
>> B usiness Briefing: Global Rule of Law — Growing Your
Business Responsibly >> C hairman’s Reception >> E xclusive Art Exhibition and Networking Reception
SPECIAL THANKS TO OUR RECENT PROGRAM SPONSORS AND HOSTS Hosts >> >> >> >> >> >> >> >> >> >> >>
Sponsors
B aker & McKenzie B BC Worldwide North America Bloomberg B ritish Consul General New York D ebevoise & Plimpton HSBC Jaguar LandRover McGraw Hill Marsh & McLennan Companies Paul Stuart TOWN Residential
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UPCOMING EVENTS
London Tuesday 18th Aviation Forum presents: The Rise of the Megacity Sponsored by Heathrow Hosted by DLA Piper Wednesday 24th Business Immigration Conference Sponsored by Magrath Venue: BMA House
September Wednesday 3rd SME Forum Presents: A Networking Reception on the Terrace Pavilion at the House of Commons Sponsored by American Airlines, Cubitt Consulting, Fried Frank, GVA, Interel, Harrods, Radius and Standard & Poor’s Wednesday 10th Gala Dinner to celebrate the UK-US transatlantic relationship with The Rt Hon Nick Clegg MP, Tobias Ellwood MP & H.E. Matthew Barzun, U.S. Ambassador to the Court of St James’s Venue: One Great George Street Sponsored by McKinsey & Company and Wells Fargo
Tuesday 30th New Members Reception Hosted by Hard Rock Café
October Wednesday 1st Young Professionals Series Presents: Speed Networking Sponsored by United Airlines Hosted by Grosvenor House A JW Marriot Hotel
Wednesday 15th Annual Member Meeting and Reception Hosted by McKinsey & Company Monday 27th BAB & United Way UK Present an Exclusive Briefing: Trends in Corporate Giving – At Home and Around the World Venue: The Savoy
November Tuesday 4th Women’s Forum Presents: Building a Powerful Personal Brand Sponsored by Hays Hosted by The Grange St Paul’s Hotel Wednesday 19th UK Energy Outlook Hosted by King & Spalding International
Wednesday 8th BAB Autumn Conference: The New Transatlantic Market: Gamechangers, Opportunities and Risks Hosted by Bloomberg
December
October
November
Wednesday 8th CEO Roundtable with William Swanson, Chairman, Raytheon
Wednesday 12th CEO Roundtable with Eugene Ludwig, Founder & CEO, Promontory Financial Group Hosted by BBC Worldwide North America
Tuesday 9th BritishAmerican Business Annual Christmas Luncheon at The Dorchester Supported by Coach and Links of London
New York
Transatlantic Business Awards Dinner
September
Thursday 9th Ambassadorial Briefing Sponsored by KPMG and Zurich Insurance
December
Wednesday 17th SME Forum: Making Healthcare Reform Work for your Company Sponsored by HSBC and DDC Group
Thursday 23rd Cyber Security Roundtable Sponsored by BAE Systems Applied Intelligence
Thursday 18th CEO Roundtable with Clarke Murphy, CEO of Russell Reynolds Associates Hosted by HSBC
Tuesday 28th Annual UK/US Tax Forum Sponsored by Deloitte
Thursday 25th Networking Reception at the Residence of the British Consul General
Thursday 13th BAB Pub Quiz: “Think You’re Clever?”
Friday 12th Annual Christmas Luncheon “A Covent Garden Christmas”
Thursday 30th Business Briefing: “Connecting CSR with your People, PR, and Profit” Sponsored by ACCA
BritishAmerican Business provides more than 100 occasions annually to connect with your fellow members and build your international business. For further details, please visit our online events calendar at www.babinc.org/events.
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Annual Christmas Luncheon Tuesday 9th December 2014, The Dorchester, London, 12.00pm - 3.00pm
We hope that you, your colleagues and clients will join us for what promises to be another hugely enjoyable afternoon of networking and entertainment, and a fabulous array of prizes to be won including flights, luxury hotel stays and much more! Early Bird Prices for BAB Members available until Friday 10th October* VIP Table of 10: £1950 +VAT (£2400) with premium seating and private branded corporate bar. Limited number of tables available. Standard Table of 10: £1650+VAT (£1950) Single ticket: £165+VAT (£205) Transatlantic Council members: 1 complimentary place *Price after early bird expires is indicated in brackets To book your table, please contact Sabina Hussain at shussain@babinc.org or 020 7290 9888.
Hosted by
Supported by
E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E E
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MID-MARKET EVALUATION A PURPOSE-BUILT BENCHMARK OF CREDITWORTHINESS
A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A
securities. They do not address the suitability of any security, and should not be relied on in making any investment decision. Standard & Poor’s does not act as a fiduciary or an investment advisor except where registered as such. A Mid-Market Evaluation is not a credit rating. While the product is based on S&P Ratings’ corporate credit rating methodology, the analytical process is simplified and adjusted for mid-market companies.
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