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Digital Economy and Cybersecurity in Japan November 1 st , 2016 Yasu TANIWAKI Director-General, Global ICT Strategy Bureau, Ministry of Internal Affairs & CommunicationsMIChttp://www.mic.go.jp/

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Page 1: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Digital Economy and

Cybersecurity in Japan

November 1st, 2016

Yasu TANIWAKI

Director-General, Global ICT Strategy Bureau, Ministry of Internal Affairs & Communications(MIC)

http://www.mic.go.jp/

Page 2: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Data Driven Society

Real World

Sensing, digitalization, transformation of data etc. eservices

AI

Stored data

Big data

Data analysis Ctyber Space

Control by data analysis

Solving social problems

Data transfer from real world

Feedback to the real world

EMS

Autonomous drive

Smart factory

healthcare

Lack of labor Increasing

medical service cost Natural

resource ccarecity Increasing nursing cost

IoT

“The 4th Industrial revolution”

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Page 3: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

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Evaluation on Global Risks

(出典)World Economic Forum “The Global Risks Report 2016 : 11th Edition” (January 2016)

Page 4: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

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Most Serious Risk Factor by Country

(出典)World Economic Forum “The Global Risks Report 2016 : 11th Edition” (January 2016)

Japan

Malaysia

Estonia Germany

Netherlands

Swithzerland US

Singapore

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Page 5: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Policy Issues on Cybersecurity

✔Enforcement of national cybersecurity strategy

✔Cybersecurity on IoT systems

✔International discussion on cyber space

4

Page 6: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Policy Issues on Cybersecurity

✔Enforcement of national cybersecurity strategy

✔Cybersecurity on IoT systems

✔International discussion on cyber space

5

Page 7: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Cybersecurity Strategy (decided by the Cabinet in Sep. 2015)

4 Policy measures towards achieving the objective

Building a safe and secure society for the

people

Peace and stability of international

community and Japan’s national

security

Improvement of Socio-economic

vitality and sustainable

development

Promotion of R&D / Deployment of human resources

1 Understanding of cyberspace

2 Objective

3 Basic principles

5 Promotion and implementation of cybersecurity syrategy

Cybersecurity Strategy

6

Page 8: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Basic principles

Free flow of information

Rules of law

Ensuring openness

Ensuring self-governance

Collaboration among multistakeholders

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Page 9: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

National Security Strategy (Dec. 2013)

(4) Risks to Global Commons In recent years, risks that can impede the utilization of and free access to global commons, such as the sea, outer space, and cyberspace, have been spreading and become more serious. (Snip)

Cyberspace, a global domain comprised of information systems, telecommunications networks and others, provides a foundation for social, economic, military and other activities. Meanwhile, risks of cyber-attacks with the intent to steal classified information, disrupt critical infrastructure and obstruct military systems, are becoming more serious. In Japan, with an increasing level of connecting networks of social systems and various other elements, cyberspace is necessary for promoting both economic growth and innovation through the free flow of information in cyberspace. Protecting cyberspace from the above-mentioned risks is vital to secure national security.

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Page 10: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Framework of Cybersecurity Basic Act (Jan 2015)

Cabinet

IT Strategic HQs Cybersecurity Strategic Headquarters

National Administrative Organizations, etc.

The Prime Minister Submission of “Cybersecurity Strategy “ to a Cabinet meeting for approval

National Security Council

Local governments, Independent Administrative Agencies, National Universities, Corporations with special semi-governmental status, Relevant organizations, etc.

Views on CSS

Formulates a draft “CSS”

Obligated to submit materials, etc.

Recommendations

Local governments

May request HQs cooperation (e.g. provision of information, etc.)

Legislation required to enable the Cabinet Secretariat to appropriately address these functions.

Offers opinions on direction and supervision of ministries

Views on CSS

① Formulates the priority plan for establishing an Advanced Information and Telecommunications Network Society (AITNS) and its implementation. ② In addition, deliberates to plan important policies for establishing AITNS and its implementation ※ Some of these responsibilities will be entrusted to the Government CIO.

① Flexible and substantial discussions on foreign and defense policies related to national security.

② Discussion on important issues regarding national defense: e.g. measures against an armed attack situation.

③ Responsive discussions on important issues regarding measures against critical incidents; provide advice about what measures the Gov. should take.

Report collection about measures based on the recommendation

Makes an effort to satisfy the request

① Formulate the “Cybersecurity Strategy” (CSS)

And its implementation

② Formulate common standards for information security

measures for national administrative organs and

incorporated administrative agencies. Evaluate(including

audit) and promote the implementation of such measures

③ Evaluate the measures taken by national administrative

organs in the event of significant cybersecurity incidents

(including examinations for cause).

④ In addition, perform the following functions:

a. Research and deliberate on the planning of major

cybersecurity policies;

b. Formulate: inter-governmental implementation plan for such

major policies; the national administrative organs’ expense

budgeting plan for cybersecurity; guidelines on the

implementation of such policies. Promote and evaluate

these policies.

c. Lead comprehensive coordination of cybersecurity policies.

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Page 11: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Policy Issues on Cybersecurity

✔Enforcement of national cybersecurity strategy

✔Cybersecurity on IoT systems

✔International discussion on cyber space

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Page 12: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

IoT as a System of Systems(SoS)

機器層

ネットワーク層

プラットフォーム層

サービス層

IoTシステム IoTシステム IoTシステム IoTシステム

System of Systems (SoS)

Necessity of dealing with systemic risk

(security by design)

Integration between OT and IT

(mission assurance)

Information sharing mechanism among multi stakeholders

Service layer

Platform layer

Network layer

Device layer

“Network” side

“Things” side

IoT system IoT system IoT system IoT system

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Page 13: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Policy Issues on Cybersecurity

✔Enforcement of national cybersecurity strategy

✔Cybersecurity on IoT systems

✔International discussion on cyber space

12

Page 14: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Issues to be Discussed on Cyber Space

■Applicability of international laws

■International norms

■Confidence building measures (CBM)

■Capacity building assistance

■Awareness raising activities

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Page 15: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Applicability of International Laws in Cyberspace(GGE, June 2015)

“In their use of ICTs, States must observe, among other principles of

international law, State sovereignty, the settlement of disputes by peaceful

measures, and non-intervention in the internal affairs of States.”

“Existing obligations under international law are applicable to State use of

ICTs and States must comply with their obligations to respect and protect

human rights and fundamental freedoms.”

“States must not use proxies to commit internationally wrongful acts using

ICTs, and should seek to ensure that their territory is not used by non-State

actors to commit such acts.”

“The UN should play a leading role in promoting dialogue on the security

of ICTs in their use by States, and in developing common understandings on

the application of international law and norms, rules and principles for

responsible State behavior.”

(Source) UN General Assembly, Group of Governmental Experts on Development in the Field

of Information and Telecommunications in the Context of International Security (June 2015) 14

Page 16: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Major Policy Issues on Cybersecurity

✔Enforcement of national cybersecurity strategy

✔Cybersecurity on IoT systems

✔International discussion on cyber space

15

Page 17: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Policy Issues on CPS (Cyber Physical System)

Realization of “trust” in

cyberspace

Realization of data driven society

Super globalization of social economic system

Conversion between cyberspace and real

space

■Digital inclusion (realization of social equality) ■Ensuring network neutrality ■Strengthening network availability ( implement SDN/NFV in the society )

■Global coordination of legal systems(avoidance of data localization) ■Realization of global connectivity ■National security in cyberspace

■Internet freedom (internet governance) ■Appropriate balance between security and privacy ■Ensuring “integrity” of data

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Page 18: Digital Economy and Cybersecurity in Japan · 2016-11-10 · Cybersecurity Strategy (decided by the Cabinet in Sep. 2015) 4 Policy measures towards achieving the objective Building

Thank you!