Risk Insider: Jack Hampton

Cyber Security: We’re Blind, Please Help

By: | April 18, 2016 • 2 min read
John (Jack) Hampton is a Professor of Business at St. Peter’s University and a former Executive Director of the Risk and Insurance Management Society (RIMS). His recent book deals with risk management in higher education: "Culture, Intricacies, and Obsessions in Higher Education — Why Colleges and Universities are Struggling to Deliver the Goods." His website is www.jackhampton.com.

A popular video shows a blind man sitting on the ground in a plaza hoping to receive money from those who pass by. His cardboard sign says simply, “I’m blind. Please help.” A few individuals drop money into a cup.

A young woman stops and changes the man’s sign. Suddenly many more individuals give money to the man.

The woman returns and the blind man asks, “What did you do to my sign?”

Her answer is, “I wrote the same but different words.” The changed sign read, “It’s a beautiful day and I can’t see it.”

With the Darknet and throwaway cell phones, terrorists do not need iPhones. Apple versus the FBI is not only about privacy or terrorism. It is about further destabilizing an already vulnerable world of communications.

In our cyber security discussions, we often use the wrong words. This happened in the recent public debate when the FBI demanded an Apple iPhone backdoor to allow law enforcement to track communications among terrorists. In a TV broadcast, “60 Minutes” framed the argument as stopping terrorism versus protecting privacy.

Tim Cook (Apple CEO) and John McAfee (anti-virus guru) argued that law enforcement and the media were missing the point. If Apple complied, terrorists would immediately change tactics.

With the Darknet and throwaway cell phones, terrorists do not need iPhones. Apple versus the FBI is not only about privacy or terrorism. It is about further destabilizing an already vulnerable world of communications.

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In an earlier Risk Insider post, I argued that there were negative consequences to consider should Apple’s “wiper” function be disabled.

The standoff between Apple and the FBI temporarily resolved itself. The FBI cracked the iPhone and withdrew the request to Apple.

In this scenario, we not only used the wrong words…we asked the wrong question. How then can we get the right answer?

Maybe we should ask, “Can Apple help us install a wiper on every computing device and network?” Ten hacker attempts and all the data is erased. We would learn to back up our data real quick.

The feature could help with privacy. Would it have anything to do with criminal behavior? Maybe yes. Maybe no.

Separately, we may be missing the big picture. When Samuel Morse and others developed the telegraph, communications were instantaneously transmitted around the world by wire. Anywhere along a railroad line, hackers could intercept the message. This is the public Internet of 2016.

Is the right question, “What should we do to fix a 21st Century communications system built upon a 19th century telecommunications model?”

Cyber security efforts should not stop with, “I’m blind. Please help.” The words should stir us to action.

We can hope the best and brightest of our cyber security folks help us see a beautiful day by devising a secure Internet that does not impede law and enforcement.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Pinnacle Entertainment’s VP of enterprise risk management says he’s inspired by Disney’s approach to risk management.
By: | November 1, 2017 • 4 min read

R&I: What was your first job?

Bus boy at a fine dining restaurant.

R&I: How did you come to work in this industry?

I sent a résumé to Harrah’s Entertainment on a whim. It took over 30 hours of interviewing to get that job, but it was well worth it.

R&I: If the world has a modern hero, who is it and why?

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The Chinese citizen (never positively identified) who stood in front of a column of tanks in Tiananmen Square on June 5, 1989. That kind of courage is undeniable, and that image is unforgettable. I hope we can all be that passionate about something at least once in our lives.

R&I: What emerging commercial risk most concerns you?

Cyber risk, but more narrowly, cyber-extortion. I think state sponsored bad actors are getting more and more sophisticated, and the risk is that they find a way to control entire systems.

R&I: What is the riskiest activity you ever engaged in?

Training and breaking horses. When I was in high school, I worked on a lot of farms. I did everything from building fences to putting up hay. It was during this time that I found I had a knack for horses. They would tolerate me getting real close, so it was natural I started working more and more with them.

Eventually, I was putting a saddle on a few and before I knew it I was in that saddle riding a horse that had never been ridden before.

I admit I had some nervous moments, but I was never thrown off. It taught me that developing genuine trust early is very important and is needed by all involved. Nothing of any real value happens without it.

R&I: What about this work do you find the most fulfilling or rewarding?

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Setting very aggressive goals and then meeting and exceeding those goals with a team. Sharing team victories is the ultimate reward.

R&I: What is the most unusual/interesting place you have ever visited?

Disney World. The sheer size of the place is awe inspiring. And everything works like a finely tuned clock.

There is a reason that hospitality companies send their people there to be trained on guest service. Disney World does it better than anyone else.

As a hospitality executive, I always learn something new whenever I am there.

James Cunningham, vice president, enterprise risk management, Pinnacle Entertainment, Inc.

The risks that Disney World faces are very similar to mine — on a much larger scale. They are complex and across the board. From liability for the millions of people they host as their guests each year, to the physical location of the park, to their vendor partnerships; their approach to risk management has been and continues to be innovative and a model that I learn from and I think there are lessons there for everybody.

R&I: What is the risk management community doing right?

We are doing a much better job of getting involved in a meaningful way in our daily operations and demonstrating genuine value to our organizations.

R&I: What could the risk management community be doing a better job of?

Educating and promoting the career with young people.

R&I: What have you accomplished that you are proudest of?

Being able to tell the Pinnacle story. It’s a great one and it wasn’t being told. I believe that the insurance markets now understand who we are and what we stand for.

R&I: Who is your mentor and why?

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John Matthews, who is now retired, formerly with Aon and Caesar’s Palace. John is an exceptional leader who demonstrated the value of putting a top-shelf team together and then letting them do their best work. I model my management style after him.

R&I: What is your favorite book or movie?

I read mostly biographies and autobiographies. I like to read how successful people became successful by overcoming their own obstacles. Jay Leno, Jack Welch, Bill Harrah, etc. I also enjoyed the book and movie “Money Ball.”

R&I: What is your favorite drink?

Ice water when it’s hot, coffee when it’s cold, and an adult beverage when it’s called for.

R&I: What does your family think you do?

In my family, I’m the “Safety Geek.”

R&I:  What’s your favorite restaurant?

Vegas is a world-class restaurant town. No matter what you are hungry for, you can find it here. I have a few favorites that are my “go-to’s,” depending on the mood and who I am with.

If you’re in town, you should try to have at least one meal off the strip. For that, I would suggest you get reservations (you’ll need them) at Herbs and Rye. It’s a great little restaurant that is always lively. The food is tremendous, and the service is always on point. They make hand-crafted cocktails that are amazing.

My favorite Mexican restaurant is Lindo Michoacan. There are three in town, and I prefer the one in Henderson as it has the best view of the valley. For seafood, you can never go wrong with Joe’s in Caesar’s Palace.




Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]