Which may be a couple of minutes because of the importance of this event in that it is the launch of what will be an Important New Initiative of the Aspen Institute. The launchingks of a new policy program of the institute that we are calling Cyber Security and technology. Obviously, a talk at that, unless you have been on a Desert Island the last six months, which actually sounds pretty good, you realize it will remain on the front pages and at the front of the National Debate for some time. Seeing some of the reporters in the room today, another sign of the centrality of this issue. We think that 2016 will likely be remembered the year in which Cyber Security really broke through the national consciousness, the coming not just a wonky i. T. Issue where we get reminders about the importance of our Computer Security to something that could actually be a threat to the american way of life. Cyber security, it turns out, is central to almost everything we do. It involves the way we bank, shop, learn, travel, and increasingly it will involve and relate to how we drive, how we heat our homes, and how we vote. Protecting Digital Security is no longer just a matter of preserving family photos that we have digitized, but it is really central to the National Debate and so many critical issues. As we have seen over the last few years, how much government and business has struggled to keep up with the attacks and new defenses and new attacks and new defenses. We thought it was an honestly important, and this is a great personal interest of walter isaacson, who is very sorry he could not be here today, that it is essential to add this as a proponent of the institute. Our goal with the program is to recognize that while the world is obviously in a much better place with the rapid advance of Tech Knowledge he, that we need stronger and Faster Solutions to keep pace with the everchanging landscape of digital threats. Aheadrogram in the months will offer educational resources, as well, as always with aspen, a nonpartisan and Interdisciplinary Forum to discuss challenges and officer policy solutions. Chairing this program will be todays moderator. Sure isat i am familiar to everyone in distribute we could not be more pleased to attract john carlin to attract him. He recently stepped down as assistant attorney general for National Security. In that position, the top legal officer in the Justice Department for all aspects of National Security. He was responsible for more than lawyers dealing with issues across the National Security landskate. We have been listening and reading about it over the last six months in earlier of whether the indictment of five Chinese Military officials, whether it was iranian hacking involving a power plant, and most recently dnc andian hacks of the also sony and many other things as well. John is going to be chair of this program. Is going to be directing that program with john being primarily at his offer. There are friends of the institute that i want to make clear. This program will overlap with our existing programs and i think it will strengthen all of them. For example, the Homeland Security program. It is central to that effort. And, our Communications Society program will continue to look at digital issues. Charlie firestone heads that program. The aston Strategy Program headed by nick burns will continue to have this critical element of the agenda. We are thrilled to welcome to the Aspen Institute john carlin. [applause] john thank you, elliott. Lets jump in with a quick introduction of our distinguished guest. We have with us lisa monaco, the president s chief adviser on Homeland Security matters, everything ranging from terrorism to Cyber Security to pandemics to hurricanes. It is the true disaster portfolio and we are glad she has time to appear with us today and hope she gets a welldeserved break her background has been a longtime from the district of columbia, where we first met. She has done everything from street crime to federal crime, a member of the Enron Task Force and a chief of staff fbi director bob mueller, the top official in the department of justices leadership and assistant to the attorney general for National Security, and finally to her most recent post ms. Monaco sound familiar . Mr. Carlin i left out the part in my career of having all disasters. Please join me in welcoming lisa today. [applause] ms. Monaco thank you. Mr. Carlin lets jump right in. The president elect team issuing a statement yesterday that said communicationsn and Technology Moving with unparalleled speed, that the necessary defenses against that threat have lagged. The is why the input from private sector makes the united six more secure. They made that in the context that Rudy Giuliani will be leading a team advising the president. I think you be the First Administration official to comment on that statement. Let me know your thoughts. Mr. Carlin ms. Monaco that description of the problem you read, i completely agree. In fact, it overlaps. I was hearing echoes of it in the description of the program you are about to share. I think the recognition of the continue this needs to to be the top priority for the next administration is something i welcome. The evolution of the threat across threat actors, across threat vectors, across tactics and procedures has expanded so exponentially that, and the defenses have lagged behind. We have made tremendous progress with this administration and to set up a framework, there is absolutely more to do and i welcome the statement from the Transition Team that they are going to give this issue the attention that it deserves. Early back when doing the transition from the prior administration, Bush Administration to the obama administration, at that point in drive toe had been a create a comprehensive cyber initiative. Are there any Lessons Learned from the attempts to adopt that initiative to the new administration that you could pass on to the next administration to make sure they keep focus on this issue . Ms. Monaco there are a few things. The need for one, prioritization which we just talked about. When president Obama Took Office in 2009, he was the first president to a knowledge that Cyber Security and the cyber threat is one of the greatest National Security and Economic Security threats that we face. I hope the new team keeps that frame as well. We are treating these two things as integrated and i think that is extremely important. The prioritization and putting the resources and attention to it. And doing so across the cabinet. One of the legacies i think of this administration will be that , theery cabinet engagement president will have on a quarterly basis his cabinetlevel, the secretaries of each cabinetlevel department. Cyber security was at the top of the agenda. It was precisely so that secretary, that administrator did not think of Cyber Security as just the i. T. s guy problem. He or she recognized the enterprise risk that Cyber Security poses to that cabinet, just like it poses to the ceo of every company in this nation. Prioritization and recognizing csuite level of attention needs to be driven down through the organization. Beenarlin they have spending a long time try to get the csuite to think about this issue and make sure is an area where people who are not cyber experts in charge of it and say they are the ones that know what the value is. One of you share with us a little bit, because i remember a story. There were a few meetings that were meant to be convened at a principal or secretary, cabinet secretary level and there was a little bit of difficulty in getting cabinet secretaries to show up instead of sending their chief cyber expert. Can you tell us a little bit about that story, how you were able to corral them, and what the lesson could be for the private sector . Ms. Monaco you are right. Often times we would try to bring departments and agencies together to address other Cyber Security issues and the reluctance of those at the senior level to really grapple with this issue was quite evident. Mcdonough and i convened the cabinet to say this is top priority. It had better be your top priority for you were going to see your agency, your department be a tremendous risk. That was borne out in what we saw in opm. Mr. Carlin i hope this isnt a state secret, which i dont think it is, but that email was rather sternly phrased and essentially ordered people to come. They said Cyber Security is your responsibility. It is one of the only times i can remember that in a meeting. I want to talk a little bit about having such a diverse portfolio. Ive heard you think before. He wrote an interesting book. ,he health care pandemic terrorism threat, and Cyber Security and cyber threat have in common. Mr. Carlin ms. Monaco it is something i have become intimately familiar with in this role. The threat is the borderless nature of this threat. You cannot create or direct an artificial, domestic, and International Device when addressing those. You need a whole of government. You have to apply every tool, every instrument of National Power that we have as a government to address every one of those issues. One of the things i found during transition time and i have been reflecting on what will be useful to my successor, what was useful to me coming into this job, and having now spent 20plus years in government, i have seen a number of transitions from different angles. What i am struck by is this evolution of the threats that we face and those that flow to the very top of the agenda for somebody in my job. When i think back on prior transitions, in the clinton transition from president bush to president clinton, obviously terrorism was front of mind. Bush, bush too obama transition, terrorism and cyber were exceptionally front. I already referenced what president obama did in 2009 to elevate priority for Cyber Security. What i am talking to my successor about is absolutely terrorist threats, absolutely Cyber Security, i just talked about that, but i am also making a point that emerging Infectious Diseases are a threat that i think this new team will face in the way that we, and in the prior administration, encountered both terrorism and cyber threats. I view emerging Infectious Diseases almost as the cyber of this administrations transition, in addition to Cyber Security. Mr. Carlin i think you mentioned. Met the president elect in the bushher, administration. Have you met . Mr. Carlin yes. We have set down a number of times and will do so until january 20. As i said, i will be as helpful as i can be Going Forward. My predecessor in this job, john brennan, has been exceptionally helpful to me as i have tried to carry out these duties. Tom, as you noted, he served as deputy to this position at the end of the Bush Administration. We have had a number of very good conversations and are working through the long list of my very long National Security and Homeland Security to do list. Mr. Carlin there has been some talk in prior administrations, there was two separate councils. The National Security council and Homeland Security council. Obama in ministration, it has been one National Security council with dual leadership, a National Security advisor and homeland advisor. Talking with tom wasser, to you know what the structure will be . Ms. Monaco i dont. I think they are working through that. What i think is critically important and what has been signaled in the naming of tom as the assistant to the president of Homeland Security and counterterrorism, what i think is critically important is that this rule, and something i have benefited from tremendously, this role has to have two things. One, direct and immediate access to the president. I have about 50 paces from my office to the oval office that i use far too often, the president would say, because it is always about some disaster, some issue, some problem when im coming to see him. And in addition to me being with him every morning as part of the National Security and president s daily brief. Direct and immediate access to the president and clear leadership and accountability and resources to drive the policy process on Homeland Security and counterterrorism issues, which is what i have had, and the ability to clearly convene both deputies and principles of the cabinet agencies on those issues. Case in point, i will convene deputies meetings on counterterrorism policies that expand the globe. Literally span the globe. On Homeland Security issues, i convene the cabinet as i did in the afternoon of the Boston Marathon bombing. Three weeks into the job, i might add. I convened the principles on that. Apparently, Homeland Security issue at the time although we did not know what we had at the time. Having direct and immediate access to the president and the accountability and resources to drive across the process. Those are the two ingredients and i hope that they will continue. Proved to be a critical element of what i have been able to do. In other words, these threats that we are talking about, they dont have a divide. You cannot define what is solely an International Event and domestic issue. They cross. Integrating staff reflects that and i think is important in order to get good policy options and recommendations to the president. Mr. Carlin lets talk about some of those crossborder nature, especially of the cyber threat. It has been a hallmark of a change in approach in this ministration, really starting in 2014 with the indictment of the five members of the peoples to try to impose costs are consequences, even on nation state actors, for infiltrating inside the United States. Whenever you do an action that causes pain to an adversary, it is obviously can raise issues in the Foreign Policy wing. There can be tension between the National Security counciltype perspective and the homeland andritytype approach whether it is taking action against china for cyber intrusion, against iranian ofors, there is a host Foreign Policy. More recently, russia. Could you walk it through a little bit . What are the factors that would lead you to take action even though it will cause a reaction from the foreign power, and what was the debate like as you tried to free up the use of these tools . Ms. Monaco the conversation, one, you have to make sure happens. You have to make sure you are bringing those issues into the room. It is usually the situation room. Have all of those. , i guessof the factors what i would say is there are principles that we try to apply. One is that all the tools that we have are going to be on the table. Actionr words, a cyber taken by an adversary does not necessarily have to be met only with a cyber response. There is another tool on the table. Lets look at all the tools we have. Law enforcement tools. Intelligence, military, sanctions, financial tools. Both public and private messaging. A whole host of things. They all need to be on the table. We need to bring those and developing options to get to the president across all of those. Is what are the considerations . There are going to be the foreignpolicy considerations of what will be the reaction what is in the longterm National Interest for the United States with,vis our relationship if it is a nationstate we are talking about, what is the potential for escalation . Right . You want to make sure that we are not going into an escort tory cyclee escala that is not necessarily in our National Interest to we want to make sure the retaliation we could face, just in the cyber realm, we are far more connected and reliant on the internet then, say, i dont know, north korea. Reaction,at actionreaction cycle . All of those things need to go into the mix. Our guideposts have to be one,