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This file was generated by Descript 

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Welcome to The Chemical Show, the
podcast where chemical means business.

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I'm your host, Victoria Meyer,
bringing you stories and insights

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from leaders, driving innovation and
growth across the chemical industry.

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Each week, we explore key trends,
real world challenges, and the

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strategies that make an impact.

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Let's get started.

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Victoria: Welcome back
to The Chemical Show.

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I am here with Rob Lee, who is the
CEO of Dragos,  one of the most

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premier cybersecurity firms in the U.

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S.

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and maybe globally.

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Rob regularly gets called in to
consult with companies, with countries.

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and probably more on
cyber security issues.

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So we're here again at the Marsh
North American Energy and Power

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Symposium having this conversation.

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So when you hear a little
background noise, you know why.

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But anyway, glad to have
this conversation with Rob.

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Rob Lee: Thanks for having me.

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Victoria: Absolutely.

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So tell us a little bit about yourself
and how did you get into cyber security?

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Rob Lee: security?

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Sure.

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So I started my career on the U.

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S.

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Air Force side of the house.

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It was building control systems.

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When we talk about cyber security,
sometimes we talk about the information

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technology side of the house, which
is more of like your email servers

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and computers and things like that.

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And we also have the operation technology
side of the house, what we call

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OT, which is really your,  chemical
facilities, your water treatment

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facilities, your power grids, like
the physics side of the house, right?

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And so all my work is really
focused on the OT side.

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And I enjoyed doing humanitarian work in
the Air Force,  building control systems,

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building wind turbines in places like
Cameroon,  and then I realized that cyber

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could be used to impact those systems,
got recruited into the National Security

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Agency, and ended up building out the U.

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S.

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government's mission, looking at
various states and criminals breaking

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into infrastructure around the world.

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And then after that, started
a company called Dragos.

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Okay, so

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Victoria: why leave the NSA?

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Rob Lee: Yeah, uh, lots of discussions
and the wrong liquid in the cup,

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but,  I enjoyed my time at the NSA,
and, and surprisingly, we actually

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did a lot of like interesting
defensive and cool work in that way.

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It was actually when I got sort of
rerouted back to Cyber Command and looking

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at the offensive side, and I got to be
other people's adversary for a while.

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I just didn't really agree
with what I was doing.

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Like, countries should have
military capabilities to impact

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others, no, don't get me wrong.

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Uh, generally though, I think
everybody should stay out of each

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other's civilian infrastructure.

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And every 35 year old mom should
be able to go home to her 5 year

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old kid regardless of nationality.

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And I don't think that's
not typically the view.

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Victoria: Yeah, well.

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Different points of view everywhere.

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Everywhere.

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So, tell us a little bit about Dragos.

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Oh,

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Rob Lee: identifying vulnerabilities
and threats and things like that.

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But a lot of the big incidents that take
place, they'll call us in,  hopefully

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ahead of time, but if at worst,  sort of
after the incident to try to deal with it.

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So like, we did the Colonial Pipeline
incident, we've been involved in

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a lot of the Ukraine attacks and,
and, and analyzing the  cyberattacks

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and electric infrastructure there.

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So, kind of any of the big things
you've heard of before, may have

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heard of in, in cyberattacks and
infrastructure, usually there trying to

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Victoria: this all computer related?

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When I think cyber security and
cyber attacks, I think computers is

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that what you guys are working on?

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Rob Lee: think a lot of, you know,
probably one of the more surprising

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things is a lot of business executives
of these companies feel, hey, we're

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doing a lot on cyber security.

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But there's so many different things
in cybersecurity and the minimum

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there's that big IT versus OT bucket.

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And most governments, most board of
directors, most business leaders are

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surprised to find that 95%, not a
made up statistic, about 95 percent

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of all the budget to cybersecurity
efforts is going to the IT side of the

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house, not the OT side of the house.

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But you generate all your revenue and
have all your safety impact and your

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business impact and national security
impact on the other side of the house.

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So about 5 percent of all of the
efforts in the community and the

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resourcing is going to the side
that actually generates all the

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revenue and national security impact.

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Victoria: so the actual asset, the
infrastructure, the operating plant, et

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Rob Lee: Correct, correct.

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So for all your chemical
engineers and business folks.

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What cyber security is to them
is probably, oh, uh, secure

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my password, secure my data.

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That's cool.

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The cyber security that actually
impacts them is as our industry

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has become more digital.

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We've become more complex, more
control systems and automation.

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That digital network with the
physics impact, the physical

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world, that's cyber security now.

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And it probably wasn't true 15 years ago.

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Victoria: Absolutely.

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Right.

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Because we're relying on computers,
more efficient operating systems,

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et cetera, to run everything.

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In

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Rob Lee: If an operator can open
up a circuit breaker through a

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computer, now an adversary can

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Victoria: Yeah, absolutely.

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In fact,  I'm gonna say
this for our listeners.

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Brad Amp, who's CEO of Carpenter, was
on the podcast a couple years ago.

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We will link to that episode, and
he talked about the cybersecurity

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attack that they had, how it
took down  their operations,

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and how they recovered from it.

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And they were able to recover.

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they found a solution.

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But it's an interesting
story and conversation.

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So I will, I will link to
that for people  to hear

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Rob Lee: you know, one of the, one
of the scary things for a lot of

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companies, so good on 'em because one
of the scary things that a lot of the

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boardrooms I get in is most companies
don't have the investments ahead of

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time into the cybersecurity of OT to
even know when something goes wrong.

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Was it cyber or not?

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Yeah.

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And so, you know, a lot of the
national security conversations

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I get in with various government
leaders, they have the question of

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like, well, when a  cyber attack
happens and does this, what do we do?

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I'm like, how do you know
that it's cyber or not?

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And they go.

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Oh, I don't, I don't know.

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And it's like, that's, that's
the starting discussion.

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And so we've seen chemical mishaps, safety
issues, et cetera, where people look

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at it and go, we don't, we don't know.

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We, like, I guess it's
a maintenance issue.

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And you're like, okay.

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And that kind of ruins
your ability to respond

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Victoria: Yeah.

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I will say on a personal level, you know,
if I think about the internet of things

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and just the home internet of things,
like, you know, we have a ring doorbell.

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We have a.

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I don't know if it's an,
I don't know what it is.

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It's a nest.

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It's one of the,  thermostats, whatever.

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And I do worry about
the fact that, you know,

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Rob Lee: Somebody

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Victoria: somebody outside of
our control can control it.

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And that's on a microcosm, on a home

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Rob Lee: example, though.

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Like, think for a second, you've got
an internet connected thermostat,

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you've got an internet connected
alarm system, and then you've got an

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internet connected toaster, right?

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And then one day you
have a fire in the house.

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Did somebody hack your system,
disable the alarm system and

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cause a fire in the toaster, or
was it just a mechanical mishap?

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That question, take that now into
any digital infrastructure that

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we have, that's really hard to

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Victoria: if you don't do

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Rob Lee: if you don't do
the work ahead of time.

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Victoria: so like, I think it's,

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Rob Lee: Yeah.

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So like, it's, I think it's,
I think it's easy, but you

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know, that's, that's maybe the,

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Victoria: coming off the edges,

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Rob Lee: yeah, yeah, maybe, maybe
that's like coming off pretentious,

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but I think number one, we're
all good at scenarios, right?

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So in the chemical industry, as well
as infrastructure in general, we

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have a very good safety community.

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And so understanding safety process,
process hazard analysis, HAZOPS

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processes, like going through a
safety scenario, we don't sit there

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and go, I want a better valve.

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I want to better pressure it
and go, what's the scenario that

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Victoria: it.

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And so I think cybersecurity

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Rob Lee: look at all
the controls across it.

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And so I think cyber security sometimes
comes out with like, you should deploy

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this thing, or you should have this
tool, or a complex password, but

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they're not looking at the scenario.

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So one of the things I generally advise
is, first off, look at the real scenarios.

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Your company doesn't
have unlimited budget.

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It doesn't have the ability to
go, how do we reduce cyber risk?

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Well, what does that mean?

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But we could say, Hey, here's three
scenarios we've seen that have

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caused impact in the chemical or
energy or water industries before.

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Are we ready for those three scenarios
and across our 50 sites, three, three

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sites, 300 sites, what would it look like?

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Well, what are the abilities to try
to prevent it, to try to detect it,

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and try to respond and recover to it?

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And you look at those controls across
the scenario, and you can very easily

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get to something that you cannot measure.

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Now it's not some random
presentation in a boardroom of

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like, High risk, low risk, is it 33.

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5, is it 40, and it's
like, what does that mean?

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It's like, if that happened
to us, would we be okay?

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Like, oh yeah, we could
actually deal with that one.

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Victoria: okay?

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Oh yeah, we gotta actually
deal with that one.

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Ultimately, the CEO owns the

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Rob Lee: mean, ultimately,
the CEO owns the risk.

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So this idea that like the chief
information security officer, the

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chief risk officer owns the risk,
their advisors, the CEO owns the

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risk with oversight from the board,
depending on your corporate structure,

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and the rest of it about advice.

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So the CISO or the chief information
security officer sometimes is rolled

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under a CIO, which is debatable if
it should be or not,  is presenting

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me, here's what I think the risk is.

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You need to challenge those folks
because a lot of the ways the

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careers have developed for chief
information security officers is out

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of the help desk, out of IT, etc.

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They don't know your plans.

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So, they really need to understand
what's your OT cybersecurity risk.

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Don't just speak about cyber.

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Like, challenge them.

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Like, is that the enterprise
or is it enterprise IT?

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Okay, you're talking the enterprise
or you're talking OT then?

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And so, are you talking about enterprise
OT, chief information security officer?

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Great.

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What do you advise against real scenarios?

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And then it's up to the CEO, usually
also the CFO or Chief Operations

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Officer, to sort of delegate that down.

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And the ultimate, especially in
the chemical industry, ultimately

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you're coming to the plant manager.

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Victoria: from

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Rob Lee: if I operate that asset,
I am responsible for everything

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that happens at that asset.

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And I am responsible for the
cyber risk that goes into it as

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well, but I'm not responsible to
know all the possible cyber risk.

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I need advisors in my organization for

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Victoria: Right.

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I was going to say, because a plant
manager,  they're often an engineer,

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a scientist of some variety that
that's grown up through the system.

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They would say, I'm not actually
equipped to, to handle cybersecurity.

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However, risk management is
absolutely one of their remits.

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Rob Lee: remits.

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100%.

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And again, at a board level, really,
if you're talking a lot of these

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like cybersecurity scenarios on an
operations impact, you are talking

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safety, you're talking massive
financial impacts for public company.

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This is like your eight K
and 10 K filing discussions.

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You're talking national security,
depending on the size of your company.

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It should be an elevated conversation.

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And once that elevated conversation
happens, it's really just binary.

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Are we going to address this risk?

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Yes or no?

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Not like, what level of it?

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No, no.

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Are we going to try to address this risk?

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Yes or no?

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Because then there's got to be funding.

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And that was what was really
useful in the chemical industry

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after the Bhopal incident, right?

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So from a safety perspective, used to,
for many companies it was, safety comes

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out of your budget, and do it or don't.

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And then we looked at it as an industry
and went, Oh, that's, that's not good.

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Like we, as a company shouldn't
be able to like deal with that.

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Let's just say there's a corporate
budget for mitigating the safety risks.

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And if you want to go beyond that, feel
free to plant budget, but the minimum

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we'll take that out of the budget overall.

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And those same kind of mechanism that
you have in long story short, there

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should be a company understanding of
what are the risks we want to mitigate.

00:10:29.576 --> 00:10:32.776
There should be a company understanding
of to this level, we'll resource it.

00:10:32.976 --> 00:10:35.706
And then underneath that and the
how to do it should be the plant

00:10:35.958 --> 00:10:43.380
Victoria: underneath that and
how to do that should be plan.

00:10:43.380 --> 00:10:47.726
It's starting to become, it may

00:10:47.890 --> 00:10:50.060
Rob Lee: become, it may become
federally required in the U.

00:10:50.060 --> 00:10:50.250
S.

00:10:50.250 --> 00:10:50.580
actually.

00:10:50.600 --> 00:10:55.450
So, so what's, what we're seeing
from, so SEC, right,  has made this

00:10:55.450 --> 00:10:58.620
determination that you need to talk
about material events in your company.

00:10:59.300 --> 00:11:02.680
And, and material event, obviously
that, that's true regardless of cyber.

00:11:02.960 --> 00:11:05.800
Usually a 10K that you file
with the SEC saying here's the

00:11:05.800 --> 00:11:06.950
things that can be material.

00:11:07.290 --> 00:11:09.940
And then when something happens
that is material, you find out a

00:11:09.950 --> 00:11:11.510
file on 8K to say something changed.

00:11:11.960 --> 00:11:14.570
And it's required by law for
any of these public companies.

00:11:14.840 --> 00:11:17.940
They have designated that cyber
can be material and they expect to

00:11:17.940 --> 00:11:19.280
see the cyber components do that.

00:11:19.860 --> 00:11:22.710
So, it's already being mandated that
you have to have the conversation.

00:11:23.000 --> 00:11:26.470
What we're seeing sort of as best practice
is these companies are getting together

00:11:26.470 --> 00:11:27.940
saying, Well, what could be material?

00:11:28.390 --> 00:11:30.660
Instead of waiting for something
to happen and filling out the

00:11:30.670 --> 00:11:32.660
8K, go reverse engineer the 8K.

00:11:33.195 --> 00:11:34.395
Hey, I'm a chemical company.

00:11:34.395 --> 00:11:37.335
What happened to make an eight K at
the other three chemical companies

00:11:37.335 --> 00:11:41.115
that did it, let's take that
eight K and reverse engineer it.

00:11:41.115 --> 00:11:43.235
And usually how that's done
as a tabletop exercise.

00:11:43.635 --> 00:11:45.865
So you get around the room with
the appropriate people in the

00:11:45.865 --> 00:11:48.795
room, whether security people,
operations people, whoever, and go.

00:11:49.400 --> 00:11:49.650
Cool.

00:11:49.650 --> 00:11:52.400
Here's a fake scenario, but
it's, it really happened for

00:11:52.410 --> 00:11:53.900
not just like lasers from space.

00:11:53.900 --> 00:11:54.910
Like do something real, right?

00:11:54.910 --> 00:11:58.590
Like here's what we saw
happen before, respond.

00:11:58.630 --> 00:12:01.660
And then they kind of work
through it like a game of sorts.

00:12:02.060 --> 00:12:04.530
And then they determine, oh, actually
we're not in a good place to deal

00:12:04.530 --> 00:12:05.530
with this or we think we are.

00:12:05.570 --> 00:12:08.040
And that we think we are then
should be followed up with technical

00:12:08.040 --> 00:12:09.730
assessments of, are you really?

00:12:10.015 --> 00:12:11.745
Did you really have those investments?

00:12:12.015 --> 00:12:14.435
And that should be reported back to
the executive group to be able to say,

00:12:14.455 --> 00:12:16.075
yeah, we're actually as good as we are.

00:12:16.355 --> 00:12:16.745
No, we're not.

00:12:16.745 --> 00:12:17.675
We have these gaps.

00:12:17.705 --> 00:12:18.295
Let's go address

00:12:18.665 --> 00:12:20.885
Victoria: And you guys support
companies on those exercises, is that

00:12:20.885 --> 00:12:22.315
something that you do as part of Dragos?

00:12:22.445 --> 00:12:24.705
Rob Lee: So even though we're a tech
company that's like our bread and

00:12:24.705 --> 00:12:28.125
butter that preparation ahead and
that tabletop exercise is where we get

00:12:28.125 --> 00:12:31.265
called in a lot and then unfortunately
a lot on the response side as well.

00:12:31.345 --> 00:12:31.625
And we're,

00:12:31.805 --> 00:12:33.955
Victoria: Okay, so I like to
always talk about leadership.

00:12:34.005 --> 00:12:40.125
You're a relatively young CEO, working
with probably a lot of older CEOs.

00:12:40.521 --> 00:12:41.571
How has that played out for you?

00:12:41.571 --> 00:12:43.411
I'm just gonna ask that
as a broad question.

00:12:43.761 --> 00:12:46.251
Rob Lee: Uh, really well,
so far and surprising.

00:12:46.251 --> 00:12:46.751
I used to go in.

00:12:46.751 --> 00:12:50.031
I'd like have these meetings with these
serious companies and like, Hey, I

00:12:50.031 --> 00:12:51.261
know I'm just a young CEO or whatever.

00:12:51.261 --> 00:12:53.551
And they're like, and eventually one
of them told me, and this isn't really

00:12:53.551 --> 00:12:54.461
a question, but I think this is funny.

00:12:54.461 --> 00:12:57.541
Anyways, um, one of them told me
like, stop it because I always played

00:12:57.541 --> 00:12:59.871
the card like, Hey, I'm first time
founder, CEO, young guy, whatever.

00:13:00.111 --> 00:13:00.611
They're like, stop it.

00:13:00.801 --> 00:13:01.941
How long have you been CEO of Dragos?

00:13:01.941 --> 00:13:03.471
And I was like, at the time,
it was like seven years.

00:13:03.921 --> 00:13:04.661
I was like, yeah, seven years.

00:13:04.661 --> 00:13:05.181
He's like, great.

00:13:05.271 --> 00:13:06.491
I've been a CEO for three.

00:13:06.631 --> 00:13:08.861
So you tell me, I was like, Oh, okay.

00:13:08.861 --> 00:13:13.371
And so I think a lot of the CEOs I
meet are really humble in the position.

00:13:13.441 --> 00:13:15.001
I'm not saying like everybody
else, but like most of them are

00:13:15.001 --> 00:13:16.111
very humble in the position to go.

00:13:16.341 --> 00:13:18.221
It doesn't matter how many
years it took me to get here.

00:13:18.261 --> 00:13:20.081
I'm here and here's my base of expertise.

00:13:20.331 --> 00:13:22.311
You have a base of expertise
and I'm calling on it.

00:13:22.601 --> 00:13:24.381
You tell me what your expertise is.

00:13:24.391 --> 00:13:25.911
So I found that to be pretty open on that.

00:13:26.201 --> 00:13:29.611
But it is, it's been fun on the
infrastructure side because in

00:13:29.611 --> 00:13:31.301
cybersecurity, a lot of the cybersecurity

00:13:31.691 --> 00:13:35.021
executives, Chiefs, and Rescue Officers
are always yelling like, How do I get

00:13:35.021 --> 00:13:36.391
the business to take me seriously?

00:13:36.401 --> 00:13:38.281
How do I get them to take seri And
like, I don't have that problem.

00:13:38.651 --> 00:13:40.861
Because when I go talk to President
Well, not like that, but when I go

00:13:40.861 --> 00:13:46.271
talk to No CEO, no President, no
Parliamentary Member is confused about

00:13:46.271 --> 00:13:47.691
where their country generates revenue.

00:13:48.276 --> 00:13:52.366
Or risk, like it's just, I don't have
the, well, how do you secure your data?

00:13:52.366 --> 00:13:55.636
I'm like, Hey, if there's a
plant fire over there, it's 300

00:13:55.637 --> 00:13:56.746
million of lost productivity.

00:13:56.986 --> 00:13:58.356
They go, yeah, yeah, we get that.

00:13:58.366 --> 00:14:01.626
And so the impact allows
it to sort of be the, yes.

00:14:01.656 --> 00:14:03.296
Now, how do we want to deal with that?

00:14:03.326 --> 00:14:05.726
And I think that allows the
conversation to go pretty smoothly.

00:14:06.036 --> 00:14:07.360
Victoria: Well, this has been great.

00:14:07.450 --> 00:14:09.305
Thank you very much for the conversation.

00:14:09.305 --> 00:14:10.475
I know that people are gonna love it.

00:14:10.515 --> 00:14:12.705
And looking forward to hearing your speech

00:14:12.910 --> 00:14:13.580
Rob Lee: Yeah, good.

00:14:13.590 --> 00:14:15.900
Hopefully no one in this
group ever has to call me.

00:14:15.940 --> 00:14:16.950
But if you do, do it in advance.

00:14:17.170 --> 00:14:17.360
Yeah,

00:14:19.221 --> 00:14:21.381
Thanks for joining us
today on The Chemical Show.

00:14:21.721 --> 00:14:26.181
If you enjoyed this episode, be
sure to subscribe, leave a review,

00:14:26.451 --> 00:14:30.011
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00:14:33.741 --> 00:14:36.261
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00:14:36.911 --> 00:14:40.861
You can find me at Victoria King
Meyer on LinkedIn, and you can also

00:14:40.861 --> 00:14:42.811
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00:14:43.221 --> 00:14:46.451
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