Publication: The nature of society: Are certain cultures less predisposed to cyberthreats than others?

An examination using the example of Germany

Author: Jochen Werne

Published: Werne, Jochen (2019, December 1). The nature of society: Are certain cultures less predisposed to cyberthreats than others? An examination using the example of Germany. In the Cyber Security: A Peer-Reviewed Journal, Volume 3, Issue 2.

ABSTRACT

Successful ransomware attacks and thefts of data and passwords have unequivocally demonstrated that technical defensive measures are to be considered as merely basic moves in the protection against cyberattacks, and that security concepts, if to be effective, must take ever greater account of the human factor. Several examples prove that attack vectors which belong to the area of ‘social engineering’ are menacingly successful. Employees of enterprises, especially SMEs, frequently underestimate their importance when assessing security risks and the defence against them. As a consequence of these findings, a company-wide risk management should respect cultural and psychological peculiarities. Another promising approach are AI-based concepts, both as a technical defence against cyberthreats and in respect of processes specific to the company, as well as culture-specific characteristics of its employees. Both approaches are based on understanding human behaviour in its sociocultural context. Within the scope of this paper, this cultural aspect of cyber security is examined with regard to whether certain cultures may be less predisposed to cyberthreats than others. This is analysed using the example of Germany and also considers the question whether more or less authoritarian company cultures play a role in this context. How can phenomena such as German angst and similar cultural peculiarities be adequately taken into account? The remarks are mainly targeted at an audience which is concerned with organisational and technical countermeasures again cyberthreats. They focus on the importance of incorporating findings from psychology and social sciences when designing and realising such measures.

Author’s Biography

Jochen Werne is the Chief Development and Chief Visionary Officer (CDO/CVO) and executive committee member of PROSEGUR Cash Services Germany Ltd. Prior to that he was director and authorised officer of the Bankhaus August Lenz & Co. AG. Jochen is also member of the Federal Ministry of Education and Research Initiative ‘Learning Systems’ — a platform for artificial intelligence, member of the expert board of Management Circle, as well as a member of one of the most important think tanks worldwide: Chatham House, the Royal Institute of International Affairs. Jochen is a keynote speaker at various banking, innovation and executive conferences as well as an author and co-author of several textbooks and professional articles.

ABOUT Cyber Security: A Peer-Reviewed Journal

Cyber Security is the major peer-reviewed journal publishing in-depth articles and case studies written by and for cyber security professionals.  It showcases the latest thinking and best practices in cyber security, cyber resilience, cyber crime and cyber warfare, drawing on practical experience in national critical infrastructure, government, corporate, finance, military and not-for-profit sectors.

Each quarterly 100-page issue analyses significant current and emerging cyber security threats and the latest strategies, techniques and technologies available to detect, manage and react to them, helping to uncover potential weaknesses in your current systems which could be open to attack. Its detailed articles and case studies – all of which are peer-reviewed by an Editorial Board of leading cyber security experts – provide in-depth, actionable advice and ‘lessons learned’ from fellow professionals, showing how cyber security programmes have been specified, designed, implemented, tested and updated in their organisations, as well as how data breaches and exercises have been managed in practice.

Cyber Security does not publish advertorial or advertising but rather in-depth articles on key topics including:

  • Cyber security risk assessments, platforms and frameworks
  • Building cyber response programmes
  • Protective measures
  • Threat surface analysis and detection
  • Incident response and mitigation
  • Training ‘red’ teams
  • Crisis and reputation management
  • Recovering from a data breach
  • Employee and customer awareness, education and training
  • Workforce analysis and programmes
  • Reporting to senior executives and getting sufficient funding
  • Scenario planning, penetration testing and cyber security exercises
  • Reducing insurance premiums
  • Cyber security in the supply chain
  • Insider threats
  • Cloud security risk
  • Cyber warfare, cyber terrorism and state-sponsored attacks
  • Safe disposal of sensitive data
  • Cyber security investigations and digital/analogue forensics
  • Hackers’ techniques and motivations
  • Security architectures and network assurance
  • Internet fraud techniques
  • Encryption, cryptology and data protection 
  • User behaviour analytics

Save the date: Keynote WIRTSCHAFTSWOCHE CFO Digital Suite

It is a great pleasure giving a keynote at the WIWO Digital Suite 2020 and to discuss the topic „Back to the roots. How technological progress and artificial intelligence is influencing international affairs and business today.“ with Germany‘s leading CFO‘s.

ABOUT THE KEYNOTE

Jochen Werne

The length of stay of market-leading companies in the DAX, NASDAQ and other leading indices is decreasing rapidly. The planning cycles in companies and for CFOs are becoming shorter and shorter and the planning uncertainty with regard to the effects of international tensions on exports is increasing. The keynote will provide information on the relationship between the phenomenon of exponential technology leaps and the resulting innovations in the field of artificial intelligence and its impact on the geopolitical situation and international cooperation in general, and customer behavior and communication in particular.

ABOUT THE WIWO CFO-DIGITAL SUMMIT

A successful digitization strategy can only be implemented with and by the CFO. CFOs are drivers of change in the company and at the same time have to change themselves and the finance function.
This is a balancing act in which the prioritization of digitization projects in particular becomes a challenge in day-to-day business and again increasing cost pressure.
With the CFO Digital Suite, WirtschaftsWoche offers a creative space for your own assessment and inspiration.
Where do other CFOs stand with their digitization roadmap? The data driven company – process mining in practical test Restructuring and cost management vs. future projects – mastering the balancing act
Upskilling – wish or reality?

Cash, Currency, Culture – the love affair of Germans and their coined liberty

It has been a great pleasure giving the keynote at the CashCon2020 together with Mirko Siepmann, member of the board at Bankhaus August Lenz and long term business partner of Prosegur Germany.

Jochen Werne – CDO/CVO – Prosegur Germany & Mirko Siepmann – MD – Bankhaus August Lenz

We reflected with the expert auditorium, topics as Cash versus Crypto, The rise and fall of cash through the ages; Why we Germans, of all people, stick so closely to cash and if ATMs – will soon be a thing of the past or will they withstand digital disruption?

„All things are ready, if our minds be so.“ Shakespeare and the 3rd ICT International Payment Summit

It was greatly stimulating discussing innovation and the impacts of modern technology on our business and society with international experts from South America, Europe and Asia at the 3rd Annual International Payment Summit, organised by ICT. All in the context of Coined Liberty 2.0

Find highlights here

Natalie Turner & Jochen Werne discussing business transformation at the TechWeek Frankfurt

Natalie Turner, Host of disruptive LIVE and Jochen Werne, CDO/CVO of Prosegur Cash Services, Germany in a lively discussion about the different aspects of change in companies and society. The interview touches aspects of fear and consciousness by giving examples reaching from Shakespeare to the Age of Enlightenment and our modern times of exponential technologies and artificial intelligence.

Find the full interview on DisruptiveLIVE, HERE

Identity Recovery Services – The smart idea in Cyber Security and Access Management

WHAT HAS IAM & CYBERSECURITY TO DO WITH A FAMOUS CAR CRASH OF A SOVIET LEADER ‪?

It was a perfect Friday morning over the clouds on the way to give a speech at the famous Steigenberger Hotels and Resorts Grand Hotel Petersberg. In 1973 the Soviet head of state and party stayed for a few days in the luxury hotel and the visit became legendary because Brezhnev had an accident with his guest gift, a sports car, on the curving driveway.

What could be a better place to discuss safety and security with thought leaders in a speech about “#AI and it’s impact on #IAM & #Cybersecurity” at the Executive-Insights IAM Exchange Conference

‬Identity Recovery Services – The smart idea in Cyber Security and Access Management: More to come on this topic soon

Find more details on the conference at www.iam-exchange.com

German Stevies committee is awarding innovations and human creativity

The German Stevie Awards are a top-class business award for the German business world. Outstanding achievements are rewarded in over 80 different categories: from Manager of the Year in over 30 industries, to Marketing Campaign of the Year, to Product of the Year, and more.

It’s greatly inspiring seeing the different approaches companies are going to be innovative and a step ahead of their competition in a highly dynamic business environment

Jochen Werne
German Stevie Awards Jury Member
Management & Human Ressources


Jury member Jochen Werne about the importance of the human factor in a digital world

Business, AI, Politics and Society – An inspiring evening with the WJ Hamburg

It has been a great pleasure not only to give a speech at the plenary meeting for the Wirtschaftsjunioren Hamburg, but also to discuss in-depth the impact of AI on our society with a highly engaged auditorium.

Together with the Wirtschaftsjunioren / (c) WJ Hamburg

After the meeting the Wirtschaftsjunioren summarised the evening on Facebook as follows:

“At yesterday’s plenary meeting of the Education Committee, we combined the exciting topic of artificial intelligence with the beautiful (junior) life. Our keynote speaker Jochen Werne, Director Business Development & Marketing at Bankhaus Lenz, lecturer and author, gave a vivid presentation on the opportunities, dangers and challenges of AI for companies and society. How does it feel to pass on your activated smartphone to the person sitting next to you? What does a folded leaf have to do with the moon and AI?

Jochen Werne / (c) WJ Hamburg


We had SALT AND PEPPER as a guest for the further practical testing of AI. In a VR environment, we were able to build future production facilities using the BoxPlan product. The innovative Startup Smunch, the online canteen for happy teams, provided us with very real, delicious food. In the lounge-like atmosphere of the Ruby Hans Workspaces we found a great setting for stimulating conversations and networking.

We would like to thank all guests and cooperation partners for a successful junior evening: Private Family Banker, Exclusive Agent Bankhaus August Lenz & Co. PUBLIC LIMITED COMPANY, SALT AND PEPPER technology and management consulting, software development, Smunch.co
And remember, on 26.05.2019 is the European election, Step Up For Europe (see group photo 😉 )”

Wirtschaftsjunioren Hamburg – Engagement for Europe / (c) WJ Hamburg
Prof. Dr. Peter Scholz (HSBA) & Sven O. Müller (7orcas) / (c) WJ Hamburg

Thank you very much to the Wirtschaftsjunioren Hamburg and Alexander Köhne for the highly appreciated invitation.

Human. Digital. Culture. Our life in times of exponential technologies

16 January 2019 – Author: Jochen Werne

Almost every day, experts in the media try to create a historical analogy for us in order to explain the dynamics and speed with which changes are taking place today at all levels of our lives – from private consumption and our working world to international politics. Often analogies are drawn to different decades of the 20th century. The prominent British historian and Harvard professor Niall Ferguson contradicts these comparisons and sees an analogy rather in the effects that the invention of the printing press in the 15th century had on our lives and on our society. Only that today the changes due to exponential technologies and the Internet take place much faster.

For us as the HUMAN Factor, these comparisons are incredibly important. In times of uncertainty, they help us to better assess the changes and thus at least maintain a certain reassuring feeling of security and explainability. However, if we do not succeed in setting the right filters in times of social media and “information overload”, we run the risk that this feeling of understanding does not materialize and that we all too easily become victims of supposedly simple explanations and “fake news”. Ferguson uses a striking example to illustrate that this is not a new phenomenon and that serious technological changes have also brought major and often turbulent changes to society. In times of the invention of book printing, knowledge was spread more cheaply and a broad part of the population gained access to higher education. One of the first books to be printed in large numbers was the Bible. But also other writings, like “Malleus Maleficarum” or in English the “Hammer of Witches” became famous. The “Fake News” book served to justify the persecution of witches, appeared in 29 editions and has been second place on the book bestseller list for 200 years.

At the latest since the end of the 1990s, since the mass “democratization” of the Internet, our lives have been shaped by the exponential progress of modern technologies. The associated digitalization – the DIGITAL Factor – is not only a technical and economic challenge, but also a societal one. However, the enlightened man began, not to accept everything that a “Beautiful New World”, sometimes reminiscent of Aldous Huxley’s novel, promises. This is shown by citizen projects such as the so-called “Charter of Digital Fundamental Rights” of the European Union.

The word “exponential” automatically hides the logical conclusion that change will take place even faster in the future. These changes affect almost every industry and what is seen today as a billion-dollar future market can quickly become a basic business with significantly lower costs and thus significantly lower profit margins tomorrow. The camera chip of our smartphones costs today only about two to three Euros, a Spotify subscription, and thus the access to an incredible amount of music, only a few Euros a month.

The conclusion for companies in the 21st century is simple: Those who do not understand these exponential dynamics of technical development or do not take them sufficiently into account in their business model can quickly lose touch – not only with customers but also with potential business partners. But why is it so difficult for us to correctly assess the development potential of the technologies? The answer: People think linearly. This is why technologies are usually overestimated at the beginning of their development, but tend to be underestimated in the long run. This was first described in 1965 by the Intel engineer Gordon Moore – later known as Moore´s Law, one of the essential theoretical foundations of the “digital revolution”. In times of exponential technologies, our society risks a split between the group of people with an affinity for digital and digital natives and a group of people who have growing difficulties with the speed of change of our time. The latter have not learnt to keep pace with fast-moving digital innovations due to their low affinity, age or lack of points of contact in everyday life.

Throughout history, new technological possibilities have always come with threatening concepts that have been published and discussed on all media channels available during this period. Today it is: “total transparency”, “transparent consumer”, “constant availability” or even job loss due to ongoing automation and artificial intelligence. At the social and state level, attempts are being made to counteract such fears, to increase competitiveness and to involve the population in the process of change. Two of the many good examples referring to Germany are the strategy on artificial intelligence put in place by the Federal Government and the Platform for Learning Systems initiated by the Federal Ministry of Education and Research.

It is important never to forget, that every change – even if the trigger is a rapidly developing technology – requires a certain time horizon to be implemented and to create broad acceptance. Here the “CULTURE Factor” often comes into play. One example is cash. While the Scandinavian countries, above all Sweden, are about to digitalize their payment systems to a large extent, in Germany currently about 80 percent of all transactions are carried out with cash.

In every business model, global trends need to be identified, changes need to be driven, and local conditions need to be taken into account in order to be successful in this market. The same formula applies to societal change. Especially when it comes to creating an agenda for the use of new technologies for the benefit of our society.

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Photo from Niall Ferguson and Peter Robinson discuss networks and hierarchies throughout history in this episode of Uncommon Knowledge. Quote from the New York Times article “‘The Internet Is Broken’: @ev Is Trying to Salvage It” by David Streitfeld

The bank is perceived as a brand

Original Source in German: published on Oct 5, 2018 – “Die Bank wird als Marke wahrgenommen” Translation by DeepL Pro

Author: Angelika Breinich-Schilly interviewed Jochen Werne, Director Marketing, Business Development, Treasury & Payment Services at Bankhaus August Lenz.

Banks need to do a lot to keep pace in an increasingly digital world. In an interview with Springer Professional, Jochen Werne from Bankhaus August Lenz talks about the challenges they have to face and the right strategies.

(c) Bankhaus August Lenz

Springer Professional: Mr. Werne, what do you see as the most important driver of change in banks that is being invoked everywhere? Is it just the ongoing digitalization or do you see other reasons that require a strategic change process of the institutes?


Jochen Werne: The industry is undergoing what is probably a historic upheaval. We live in times of exponential technologies and in addition to the cost-side necessity of digitizing a large part of the processes of the institutes, the rapid change in customer expectations associated with technology, poses great challenges to an industry which is not known for being greatly agile. This disruption will eclipse many things and later perhaps be judged as revolutionary as the invention of the steam engine. In recent weeks, this has hardly made anything as clear as the rise of the online payment processor Wirecard. Wirecard was not only able to outperform Commerzbank in the DAX in September. Founded in 1999, the company has already overtaken Deutsche Bank in terms of market capitalization. In addition to the ongoing digitalization, there are also other current challenges: The low interest rate phase, which has now already lasted for a long time, is putting massive pressure on the margins of traditional houses. Political crises, trade disputes, currency problems such as in Turkey and Brexit naturally also have a direct effect on the classic business models of banks: In the future, they will have to adapt more than ever and increasingly prove their agility.
The exponential leaps in technology and ever shorter product cycles are forcing the global economy as a whole to change and adapt to changing circumstances more than ever before. Kodak is a good example. For the sake of simplification, the company has often been accused of not being far-sighted, but it has failed because of a culture that has allowed little change. Two letters are currently electrifying the economy: AI. After decades of disinterest, artificial intelligence is suddenly once again regarded as the decisive guarantor of a company’s future viability. The immediate integration of AI into one’s own business model seems indispensable, even vital for survival. Without smart software, you’d think you were dedicated to meaninglessness.
Similar to Facebook, the financial industry holds very valuable data. The preparation and processing of this data will not only become easier with maturing AI systems, but also much faster, cheaper and more targeted. It is nevertheless private and sensitive data. In order to make this resource usable in conjunction with external data, the industry must at the same time ensure its long-term security. Data may only be used in the sense of the customer, the human being – an objective that certainly has to apply to all AI-based approaches. Artificial intelligence offers an enormous range of opportunities for companies to be closer to their customers. But it also has its limits and here we are not only talking about technical limits, but also about limits that arise when the customer’s mindset does not go hand in hand with what is technically possible. Technology will only prevail if people accept it. Too radical a step, without consideration for all three areas Human, Digital and Culture, is always counterproductive.

Springer Professional: You describe that many decision-makers in the banks are well aware of the necessary changes in the business model. At the same time, however, top management often does not seem to set a concrete course and have corresponding visions. Why do you think that is?

Jochen Werne: Digitization, technological advances and the acceleration of product cycles are forcing executives to reposition their businesses. The question is no longer whether and why companies should change and introduce a more flexible organizational form, but only: How quickly and sustainably can they do it? The need for successful Change Management is not new and digitization was not an unforeseeable event. What is new, however, is the sum of the technical innovations, the possibilities offered by the technological leaps and the resulting need for extremely high implementation speeds. This circumstance has far-reaching effects on the entire management of the company. This often leads to different change processes overlaying each other, individual change processes being interrupted, modified or restarted and the organization being in a state of continuous change. And this also applies to the manager.

Springer Professional: In order to become a driver of innovation as a bank, it is necessary to anticipate not only upcoming technological but also social changes, some of which still vary greatly from region to region. One example is the payment behaviour of customers, which looks different in Germany than in other European countries or even in Asia. Many financial service providers now have think tanks or innovation labs to take on this task. But does some good ideas go up in smoke due to poorly thought-out change management?

Jochen Werne: Every new innovative offering must be easy for the customer to understand, intuitive to use and as a bank, absolutely trustworthy in terms of data security. The customer relies on the security of the communication channels as well as the careful handling of his private data. The challenge is to ensure data protection while at the same time providing the highest possible level of customer convenience. The resources of traditional banks offer enormous advantages here. An established bank is perceived as a brand by its clients, who at best associate it with important values such as trustworthiness, competence, industry knowledge and personal service. This trust is enormously important to us and should definitely be used.

Springer Professional: Companies in other industries sometimes find it easier to cope with change processes because they are not subject to additional strict regulations, as is the case with banks. Nevertheless, financial service providers such as Wirecard have succeeded in clearly differentiating themselves from traditional banks with their business model. Recently, the share value of this Fintech has even overtaken Deutsche Bank, the industry leader, as the most valuable institution. What can the industry learn from this?

Jochen Werne: Laws and guidelines have a strong influence on the competitive situation. MIFID II and PSD II are prime examples of this. In the second case, industry experts predicted that the mere opening of the banking infrastructure to third parties would lead to a major shift in competition.
This is a big advantage for FinTechs, but also the FinTech industry, which is already in the process of market consolidation, has to make considerable investments and adjustments, even if the new regulations now also open up new market opportunities. Non-adaptable service providers without sustainable and a viable business models will be driven out of the market, as will banks whose offerings do not meet the needs of customers in a digital world.
The example shows not only the usefulness of cooperation, but also its necessity. The advantages of banks, such as routine handling of regulatory issues or cross-selling opportunities due to the existing customer base, will continue to exist even after the market consolidation of the FinTech industry and the introduction of new technological standards.

Springer Professional: In order to be a driver of innovation, a bank does not necessarily have to handle all tasks alone. Where and when do cooperations with Fintechs make sense from your point of view?

Jochen Werne: What some have, others lack. Banks have a solid customer base, greater financial resources and, most importantly, a banking licence and the necessary know-how to deal with the relevant regulatory authorities. In addition, traditional financial institutions with many years of market experience, expertise in customer business and their trust can score points. Fintechs, on the other hand, have business models that are geared precisely to bringing innovative, customer-centric digital tools to market in a short space of time. Strategic alliances make sense, because ultimately everyone benefits – especially the customers. Not only the young generation today has very high demands on innovative mobile banking, but all age groups have discovered the new mobile possibilities in a very short time. Personal access to customers, which has persisted despite all the financial crises to date, is a sign that banks have preserved their most important asset – the trust of their customers. In an increasingly transparent and open financial world, however, the extent to which the customer’s loyalty to his bank will remain, is open.