NU Online News Service, Nov. 2, 3:11 p.m. EST

NEW YORK--Dealing with the risks from sea piracy, cyber crime and climate change, will require vision, pragmatism and the collaboration of the public and private sectors, Lloyd's chief executive said.

That advice came from Richard Ward, chief executive officer of Lloyd's, who said, he believed those threats can be addressed even as, "For too many people across the world, these issues seem insurmountable." He spoke at a conference here titled "Managing Risk In The 21^st Century: Climate Change, Cyber Risk and Piracy," part of Lloyd's 360? Risk Insight series.

Speakers at the event included Pen Hadow, an explorer who lead the recent Catlin Arctic Survey; Mike Liebowitz, director of risk management at New York University, who spoke about cyber risk; and Vice Adm. Maurizio Gemignani, who served as a submariner and is part of NATO's efforts to prevent piracy in the Gulf of Aden.

Mr. Ward noted, "The world seems strange and unfamiliar, a place where Navy SEALs are dispatched to hunt down Somali pirates; where North American forests can be brought down by beetles, thriving in shorter, warmer winters. A place where Bank of America ATMs can be disabled through a computer virus."

He said he believes these risks are manageable and "can be faced. And I believe that the businesses and governments that seize the challenge get involved and find solutions will rise to the top."

Three steps needed to combat these global risks are speed, tackling the complexity of the issues, and building coalitions, Mr. Ward said.

Speed, he advised, is a necessity because "We are playing catch-up" with piracy. Attacks have risen from 104 in the first quarter of 2009, to 136 in the second. Cyber crime is also growing quickly, he said, noting that an attack now occurs every 10 seconds and that credit card records of 45 million TJ Maxx customers were hacked into "and this sort of hack, is I believe, considered pretty easy nowadays."

The Catlin Arctic Survey, he pointed out, recently published new results, which "brings forward the date when the summer sea ice will be completely gone, to 10 to 20 years from now."

Event keynote speaker, Adm. Luciano Zappata, deputy supreme allied commander for the North Atlantic Treaty Organization (NATO), said in his presentation that the nature of these evolving risks and their threats "will pose new demands for tools of prevention and response, making our military strength only one component of a much larger capability set that the alliance will need to use."

He noted, "We will increasingly need to work in partnerships, leverage relationships with other international organizations to improve the transparency of information and decision-making. A comprehensive, inter-agency approach, developed in concert with other international organizations like the European Union and United Nations, is fundamental to the security of a diverse alliance."

The admiral said that as technology becomes less expensive and more widely available, "our adversaries will focus on vulnerabilities, attacking our populations, centers of commerce, and our integrated global economy," including social networks and the "vulnerable global commons."

Ensuring access and use of the global commons is central to the "security and prosperity" of the globe and to successful alliance operations, he said.

"The alliance is aware," he noted, that it must focus, not just on immediate threats, but also longer-term risks and challenges such as cyber attacks, disruptions in the energy supply and "vital lines of communication, piracy and the inevitable security implications of climate change."

To respond to emerging risks and prepare for the security aspects of climate change, Mr. Zappata said the alliance is preparing for catastrophic climatic events such as storms, flooding and drought with an "elaborate and well functioning system of civil emergency planning that spans more than 40 countries."

He explained that longer-term climatic changes will have "humanitarian, economic, cultural and political implications that can result in ethnic and religious conflicts after large scale migrations; in tensions arising over access to vital resources, especially water, gas and oil; and in geopolitical and economic shifts when, for example, ice melting yields access to new trading routes and potential new resources."

The military aspect, he added, is "only one tool in the toolbox."

Because of the complexity of the risks, Mr. Ward emphasized the need to build coalitions. "Lloyd's alone can't bring the rule of law to Somalia," he said. "We can't cut global emissions. But these things are not beyond the limits of collective action."

He noted the global aspect of the emerging risks, pointing out that "The TJ Maxx ring of hackers were a highly globalized coalition including three Americans, three Ukrainians, two Chinese, an Estonian, and a Belarusian."

He added, "If the bad guys can do it, so must we. A big test is coming up at the Copenhagen climate change summit in December. Europe is excited by the prospect of U.S. engagement."

The U.S., he said, remains "the world's only superpower. You are critical to any solution and you are also vulnerable to the failure to find solutions."

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Global Cooperation Need Seen For Climate Warming, Piracy Fight

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