We will need to consider the mechanisms available to us to dissuade or deter malicious cyber activities, particularly where it is state-sponsored or statecondoned. This includes the option of publicly attributing malicious cyber activity as a way of holding states to account. s6(a) ia 55. ig ita lM ed Cyber security industry, research and skills I would like the refresh of the Cyber Security Strategy and Action Plan to focus on steps to take advantage of the opportunities that cyber security represents. This includes expanding New Zealand’s cyber security industry, investing in cyber security research and development, and dealing with the shortage of skilled cyber security workers. This will not only contribute to improving New Zealand’s ability to protect our information systems, but support economic growth, including potentially in the regions and through exports. In this sense it is complementary to the suite of other initiatives I am advancing on digital technology. 57. There is potential for New Zealand to be recognised globally for its ability to manage the cyber security risk – and this could become a competitive advantage for the economy. A strong domestic cyber security sector would lift the cyber security of New Zealand’s businesses and enhance New Zealand’s reputation as a stable, innovative and safe environment in which to invest, find business partners, and do research and development. On the other side of the coin, countries that do not manage cyber security risks well may become increasingly unattractive as investment destinations due to perceptions of insecurity. tin g, C om m un ic at io ns an d D 56. ca s The security challenges of the Internet of Things and emerging technology The refresh of the Cyber Security Strategy and Action Plan should also advise on the role that government should play in addressing the security challenges arising from the Internet of Things and other emerging technologies such as Artificial Intelligence or Quantum computing. This should include an assessment of the extent to which such technologies are empowering criminals and malicious actors. 59. In this area, we will need to keep in step with our international partners, as well as build awareness and capability amongst individuals, businesses and organisations to mitigate risks. e M in is te ro fB ro ad 58. by th Next steps R el ea se d 60. 61. If you agree, I intend to commission the National Cyber Policy Office within the Department of the Prime Minister and Cabinet to lead a comprehensive refresh of the Cyber Security Strategy and Action Plan. Proposed Terms of Reference for this work are attached as Annex One. I would then report back to this Committee by 31 July with proposals for a refreshed Cyber Security Strategy and Action Plan that will provide a framework for intensified government initiatives to improve New Zealand’s cyber security and realise the benefits of connectivity and digital innovation. 4iz7hypmdw 2018-04-04 16:36:02 Page 9