Provisional TranslationCYBERSECURITY STRATEGY

September 4, 2015
Cabinet Decision

The Government of Japan

Contents
1. Introduction ........................................................................................................................................... 1
2. Understanding on Cyberspace ................................................................................................... 3
2.1. Benefits of Cyberspace .................................................................................................................... 3

2.2. Increasing Threats in Cyberspace .............................................................................................. 3
3. Visions and Objective....................................................................................................................... 5

4. Basic Principles.................................................................................................................................... 8
4.1. Assurance of the Free Flow of Information ........................................................................... 8

4.2. The Rule of Law................................................................................................................................... 8
4.3. Openness ................................................................................................................................................ 84.4. Autonomy............................................................................................................................................... 94.5. Collaboration among Multi-stakeholders............................................................................... 9

5. Policy Approaches towards Achieving the Objective................................................. 11
5.1. Improving Socio-Economic Vitality and Sustainable Development ........................125.1.1 Creation of Secured IoT Systems........................................................................................13

5.1.2 Promotion of Enterprise Management with a Security Mindset ............................15
5.1.3 Improvement of Cybersecurity Business Environment.............................................18

5.2. Building a Safe and Secure Society for the People ...........................................................215.2.1 Measures for the Protection of the People and Society...............................................21

5.2.2 Measures for Critical Information Infrastructure Protection....................................25
5.2.3 Measures for the Protection of Governmental Bodies.................................................29

5.3. Ensuring Peace and Stability of the International Community and National Security..35
5.3.1 Ensuring National Security ..................................................................................................36

5.3.2 Building Peace and Stability of the International Community..................................38

5.3.3 Cooperation and Collaboration with Countries around the World .........................41

5.4. Cross-Cutting Approaches to Cybersecurity .......................................................................45
5.4.1 Advancement of R&D .............................................................................................................45

5.4.2 Development and Assurance of Cybersecurity Workforce.........................................47

6. Promotion and Implementation of Cybersecurity...................................................... 52
7. Plan Process and Review............................................................................................................. 55

1. Introduction
Since the late 20th Century, the world has irreversibly experienced revolutionarytransformations. As Gutenberg’s invention of letterpress printing induced the
explosion of knowledge, the invention of computers and the Internet, followed bytheir widespread use, has enabled people to discuss and share thoughts throughout
the world without geographic and time constraints. Composed of countlesscomputers, sensors, and actuators that have been networked by information andcommunications technologies (hereinafter referred to as “ICTs”), cyberspace has
greatly expanded the activities of people in physical space. The free and interactive
exchanges of ideas and opinions in cyberspace, originated in digital messages andinformation sent from every part of the world, constitute the foundation of a global
democratic society. Additionally, sparking a cascade of new business models andtechnological innovations, the digital space has become a frontier of economic
growth.
In this new sphere of cyberspace, however, malicious activities are prevailing.
Stealing personal, business, and organizational information and assets has been
increasingly persistent. There are also growing threats against national safety andsecurity; governmental bodies and business operators, which provide missioncritical infrastructure necessary for the people’s daily lives and economic activities,
have been exposed to cyber attacks that would risk their business operations andcontinuity. In light of such malicious activities, how to best counter these threatsis a challenge to ensure and maintain the free flow of information that is the“backbone” of democracy, the safe and secure living environment of the people,
economic and social prosperity, and peace, while protecting intellectual properties
that are the fruits of the creativities and inspirations of individuals and businesses
as well.

Under these circumstances, Japan enacted the Basic Act on Cybersecurity inNovember 2014. This Act prescribes the concept of cybersecurity and defines theroles and responsibilities of the Government, local governments, and other relevant
stakeholders; it also designates the Cybersecurity Strategic Headquarters as thecommand and control body of national cybersecurity, and gives strong authorities,
such as making recommendations to national administrative organs, to the
Cybersecurity Strategic Headquarters. This mission document is to be formulated
pursuant to the Basic Act that prescribes the Government’s responsibility toestablish the Cybersecurity Strategy.

Looking towards the Games of the XXXII Olympiad and the Tokyo 2020 Paralympic
Games (hereinafter referred to as “Tokyo 2020”) and the prospects further ahead for1the early 2020s, this strategy outlines the basic directions of Japan’s cybersecurity
policies for the coming three years approximately. To the world, it articulates
Japan’s vision for cyberspace; and by implementing this strategy, Japan will
endeavor to ensure a free, fair, and secure cyberspace; and subsequently contributeto improving socio-economic vitality and sustainable development, building asociety where people can live safe and secure lives, and ensuring peace and stabilityof the international community and national security.
To achieve this objective, the Government of Japan has laid out this strategy as aplatform for the common understanding and actions of relevant stakeholders.

22. Understanding on Cyberspace
2.1. Benefits of Cyberspace
Cyberspace is an artificial domain for the free exchange of ideas without being
constrained by national borders; it is an intangible frontier of infinite values
generated by intellectual creations and innovations inspired by the ideas globally
exchanged. The private sector-led investment and the accumulation of wisdom
have been pivotal to the rapid expansion of cyberspace; and, today, cyberspace is an
essential foundation of Japan’s socio-economic activities, as it has attracted a great
deal of users due to its non-discriminatory and non-exclusive nature of easy
accessibility.

On the other hand, the cyber “diastrophism” provoked by ICTs evolution is only in
its initial stage. Recently, all kinds of “things” or physical objects, from personal
computers, home electric appliances, automobiles, to robots and smart meters, havebegun to be connected to networks including the Internet, benefitting fromadvanced hardware, such as sensor devices, the widespread of affordable and highspeed Internet, and the advancement of Big Data analytics technologies, and more.
Along with the increasing connectivity, physical objects and people in real spacehave become interconnected in a multi-layered manner without physical constraints,
by harnessing the free flow of information and accurate data communications incyberspace. Due to such linkages, there is an emergence of an “interconnected andconverged information society” where physical space and cyberspace have become
highly integrated. It is a society that enables the members of the society to create
innovative services and to generate brand new values exponentially.

A free and fair cyberspace is a prerequisite for benefitting from cyberspace, which isan enabler of the improvement of socio-economic vitality and sustainable
development.

2.2. Increasing Threats in Cyberspace

While cyberspace has brought significant benefits to our lives, malicious activities toharm these benefits are increasing. Cyberspace, which anyone can utilize without
geographic and time constraints, gives advantages asymmetrically to malicious
attackers, not defenders. At the same time, the increasing dependency of socioeconomic activities on cyberspace and the evolution of organized and highlysophisticated methods, or modus operandi, of cyber attacks that might be statesponsored have caused grave damages and exerted negative impacts on the people’s
daily lives and socio-economic activities, and consequently, threats against national
3

security have become more serious year after year.

Additionally, due to the arrival of the interconnected and converged informationsociety, malicious activities in cyberspace will cause extensive impact on all kinds ofconnected physical objects and services, and the damage caused by cyber attacks
will spread more rapidly and widely in physical space; therefore, it is anticipated thatthe people’s living will be exposed to more immense cyber threats in the future.
To prevent further aggravation of such threats, the creation of “free and faircyberspace” must be in parallel with the creation of “secure cyberspace.”43. Visions and Objective
In accordance with the Basic Act on Cybersecurity, 1 and based on the understandingon the current state described in the preceding chapter, Japan has set the objectiveof this strategy as follows.

Objective: Ensure a free, fair, and secure cyberspace; andsubsequently contribute to improving socio-economic vitality andsustainable development, building a society where the people canlive safe and secure lives, and ensuring peace and stability of theinternational community and national security.

(1) The Cyberspace Japan Seeks
For the protection of the freedom of expression, the creation of innovation, and theimprovement of socio-economic vitality, cyberspace is required to be a space where
freedom is assured without unnecessary restrictions, and, in which all actors whowish to access are neither discriminated nor excluded without any legitimate reason.

To prevent the people’s living and the international community as a whole frombeing threatened by information or property theft and the disruption of thefunctions of social systems posed by cyber attacks, cyberspace is required to becomea secure space with response capabilities against such threats, through thepromotion of a better understanding on cyberspace among all actors, including
individual people and organizations, and through each actor’s cooperative and selfmotivated activities.
Japan will make its maximum effort to ensure a free, fair, and secure cyberspace as

The Basic Act on Cybersecurity (Act No. 104 of November 12, 2014), Article 1: “Facing domestic andforeign changes such as the intensification of threats against cybersecurity on a worldwide scale, and withthe establishment of the Internet and other advanced information and telecommunications networks andthe utilization of information and telecommunications technologies, and given the situation that it is anurgent issue to ensure the free flow of information and protect cybersecurity simultaneously, the purposeof this Act is to comprehensively and effectively promote cybersecurity policy by: stipulating basic
principles of national cybersecurity policy; clarifying the responsibilities of the Government of Japan(hereinafter referred to as the “Government”), local governments, and other concerned public parties;
stipulating essential matters for cybersecurity-related policies such as cybersecurity strategy formulation;and establishing the Cybersecurity Strategic Headquarters and so forth, together with the Basic Act on theFormation of an Advanced Information and Telecommunications Network Society (Act. No. 144 of 2000),
and as a result, attempting to enhance economic and social vitality, sustainable development and realizing
social conditions where citizens can live with a sense of safety and security, and contributing to theprotection of international peace and security as well as national security.”15

illustrated.

(2) Policy Areas the Strategy Encompasses
In the interconnected and converged information society, activities in cyberspace
and those in the real world are closely linked. Ensuring a free, fair, and secure
cyberspace in such a hybrid society will make it possible for individuals in the realworld to spend their daily lives safely and affluently; for enterprises to engage invital economic activities; and for the international community to maintain peace andstability.

Japan is committed to ensure the rights and safety of the people, and to strive for thesocio-economic development of the nation as well as the development ofinternational order. Standing by these ideals, and while undergoing a historicalparadigm shift in the entire human society, the Government of Japan has set thefollowing three areas as its policy goals, that are: improving socio-economic vitality
and sustainable development; building a society where the people can live safe andsecure lives; and, ensuring peace and stability of the international community andnational security. The Government will implement the Cybersecurity Strategy toreach these goals.

Needless to say, Japan’s economic growth, crisis management, and national security
have relied on the sound functions of socio-economic systems, and looming serious
threats to these socio-economic systems are challenges to the nation as a whole. It
is a standing policy of the Government of Japan: to promote IT utilization 2, to assure
the growth strategy 3 firmly, and to take all possible means to ensure national
security 4, through cybersecurity assurance.
(3) The Future of the Nation the Strategy Envisions

Targeting the early 2020s blueprinted in this strategy, Japan has ongoing projects topromote the development of highly advanced social infrastructure, such as
autonomous systems for self-driving cars and smart communities. Regarding the
Declaration to be the World’s Most Advanced IT Nation (established on June 14, 2013; revised on June24, 2014) indicates: “Under the circumstances, as Japan strives to become the world’s highest level ITbased society, reinforcing cyber security will be imperative not only for national security and crisis
management, but also for bolstering Japan’s industrial competitiveness through the use of IT and data.”

2

National Revitalization Strategy (established on June 24, 2014) indicates: “To ensure the Growth
Strategy, the free flow of information as well as the safety and reliability in IT usage must be assured…”

3

National Security Strategy (established on December 17, 2013) indicates: “…cyberspace is necessary forpromoting both economic growth and innovation through the free flow of information in cyberspace.
Protecting cyberspace… is vital to secure national security.”

46Tokyo 2020, while there is a very basic premise to take all possible measures toensure the security of various social systems supporting the Tokyo 2020, it will
surely offer a great opportunity for Japan to showcase its national excellence to theoutside world. Towards the coming future where ICTs are interconnected with andembedded in physical objects and services, it should be reaffirmed that Japan has
unique advantages cultivated over long periods of time, which have earned global
recognition as the “Japan brand,” such as the inventions of high-quality, technicallysuperior products and services that have satisfied consumer confidence at home andabroad, and the safe and secured social systems that have developed by organicallyintegrating these superior products and services. What Japan needs is a strategy
to leverage these national advantages or the “Japan brand” for the improvement of
its national competitiveness.

To utilize cyber-physical integrated space, it is essential to have capabilities fortaking appropriate actions against potential threats hidden behind its convenience;and to this end, “investment” will be required to generate immense added values.
Such active “investment” will enhance and sustain Japan’s reliability in theinternational community for many years to come, and thus enable Japan to makeprogress towards a more affluent society.

74. Basic Principles
Japan affirms the following basic principles in policy planning and implementation
for reaching the objective of this strategy.

4.1. Assurance of the Free Flow of Information

The advancement of cyberspace as a hub of innovations and inspirations is relied on
the assurance of the free flow of information in cyberspace. Japan considers that it
is imperative to create and ensure a cyber environment where the transmitted
information will be neither censored nor altered without any legitimate reason, andwill be delivered to intended recipients.

In examining regulations in cyberspace, the free flow of information must be fully
respected, and careful attention should be given to the protection of individual
privacy as well; in this sense, due considerations should be made to maintain theproper balance between necessary regulations and the protection of privacy. As abasic condition for the free flow of information in cyberspace, morality and common
sense are requested not to offend rights and interests of others.

4.2. The Rule of Law

In the interconnected and converged information society, the rule of law should bethoroughly applied to cyberspace in the same way as it is applied in physical space.
The rule of law is essential for cyberspace to be developed as a secure and reliable
space with equal access for everyone. In Japan, cyberspace is subject to laws andother rules and norms. Similarly, in the view of Japan, international law and otherinternational rules and norms are applicable to cyberspace, and thus cyberspaceshould be governed by the rule of law in an international context as well.

Furthermore, as cyberspace has continued to expand and it has been utilized bydiverse actors all over the world, it is required to establish international rules andnorms in conformity with universal values, such as freedom and democracy, forpeace and stability of the international community. Japan will continue to engage
actively in the development and implementation of international rules and norms,
and also act on the steady introduction of such rules and norms in every country
based on its domestic situations.

4.3. Openness

Japan affirms that cyberspace must not be exclusively dominated by a certain group8

of actors, but must be open to all people who want to utilize it; and that cyberspaceconnects ideas and knowledge and brings new values into the world, with its
openness and by maintaining assured interoperability. At the same time, Japan isof the view that the majority of people’s access to cyberspace must not be denied forpolitical gains of a certain small group.

4.4. Autonomy

During the past decades, the Internet has made progress powered by theautonomous governance of various participating actors. Even if cyber threats
become national challenges requiring the nation’s all-out efforts, it is impractical,
and inappropriate as well, for a government to take all charges for maintaining orderin cyberspace.

With a view to achieving the coexistence of order and creativity in cyberspace, Japan
respects self-governance capabilities that the Internet has developed, and regards
every stakeholder’s self-reliant activities for the Internet management as the basic
foundation of cyber governance, thereby promoting the development and operationof an autonomous mechanism for the fulfillment of the functions and missions ofvarious social systems connected to cyberspace, and for the deterrence of malicious
cyber activities.

4.5. Collaboration among Multi-stakeholders

Cyberspace is a multi-dimensional space composed of various stakeholders’
activities in a variety of layers. From this viewpoint, it is necessary for theGovernment and all cyberspace-related stakeholders, including Critical Information
Infrastructure (CII) operators, enterprises, and individuals, to share a common
vision of cybersecurity and fulfill their organizational responsibilities and duties ormake individuals’ efforts.
The Government bears a responsibility to foster
properly coordinated relationships among these stakeholders. In building such
coordinated relationships, Japan is determined to take dynamic measures, byintroducing interactive and real-time information sharing and other actions, taking
into account current situational factors, such as fast-growing sophisticated cyberattacks.
On these principles of the strategy, any act of terrorism and other behaviors thatthreaten peace, and any act to support terrorism or such destructive behaviors, will
not be tolerated with respect to the freedom of people; instead, these principles
should be reflected in cybersecurity policies in harmony with perspectives of9

people’s safety and security as well as national security. In line with these fiveprinciples, and to protect the people’s safety, security, and rights, Japan reserves, as
options, all viable and effective measures, i.e. political, economic, technological, legal,
diplomatic, and all other feasible means. Cybersecurity policies, as expected by thepeople, should enable the coexistence of the freedom of expression and theprotection of their privacy, while aiming to protect their rights by deterring
malicious actors’ activities through the development of relevant regulatory
mechanisms besides timely and appropriate law enforcement.

Building the state of a world soundly governed by the rule of law – it is a way tostabilize the global market and inspire innovations; it also contributes to national
security as well as peace and prosperity in the world, as malicious actors are nottolerated in this kind of world.

10

5. Policy Approaches towards Achieving the Objective
The following are the goals and directions of the policies scheduled to be
implemented in the coming three years, for delivering results of the strategy. They
are based on the five basic principles previously described and illustrated withrespect to each policy area where the strategy contributes. Each policy is expected
to be consistent with the following three approaches, to the maximum extent
feasible.
(1) Being Proactive, not Reactive.
Perpetrators in cyberspace are always advancing their methods of cyber attacks.
Given the reality that cyberspace has vulnerabilities inherent to itself because of its
digital-based structure, Japan will not wait until some damage would be done;
instead, Japan will take necessary measures proactively, by conducting analyses on
future social changes and potential risks.
(2) Acting as a Catalyst, not Just a Passive Player.

For achieving the goal set in (1), with recognition that cyberspace is a space built andoperated by actors of the private sector as the main driving forces, Japan will
implement policies to catalyze their self-motivated activities and their own
initiatives. At the same time, Japan will undertake a leading role as a responsible
member of the international community and proactively contribute to peace andstability in cyberspace that is global by nature.
(3) Envisaging Cyber-Physical Space, not Cyberspace Alone.

All kinds of physical objects and people have been interconnected by ICTs in a more
multidimensional way, and the integration of physical space and cyberspace has
become more intertwined. Attention should be paid to the fact that any event incyberspace may affect society as a whole, producing a synergy effect with various
events including those in physical space. Recognizing the transformational process
leading to the unprecedented interconnected and converged information society,Japan will implement policies by precisely capturing such social transformation.

11

5.1. Improvement of Socio-Economic Vitality and Sustainable
Development
In the emerging interconnected and converged information society, all kinds ofphysical objects, from personal computers, home electric appliances andautomobiles, to robots and smart meters, are connected to networks including theInternet. This interconnectivity will lead the emergence of transformative systems(Internet of Things systems; hereinafter referred to as “IoT systems”) capable ofbringing new services by using Big Data generated in such networks, and so on. As
the IoT systems will prevail, the integration of cyberspace and physical space will
become more advanced and intensive. It is foreseen that enterprises will shift theirefforts to create new business by utilizing the IoT systems and adapt existing
businesses to this more sophisticated environment. For the improvement ofJapan’s socio-economic vitality and sustainable development, it is highly importantthat enterprises in Japan will not fail to seize these new business opportunities.

When enterprises provide new services through the IoT systems, ensuring “security
as a quality feature” is a prerequisite. It means that safety and security are preinstalled as essential service quality features, which is expected by individual
customers and business users in the market. Suppose a physical object was
remotely controlled by cyber attacks to make unplanned movements; personal data
was stolen via a wearable device; or, several millions or tens of millions cases of
personal and other information were compromised due to a single cyber attack
targeting a database involving various stakeholders, which resulted in causing
serious social and economic impacts. Such risks would harm the reliability andquality of the IoT-based services. It suggests a new challenge to tomorrow’ssociety at large, that is, how to minimize cybersecurity risks at an acceptable level,in counterbalance with the merits of the services provided with the IoT systems.

In the interconnected and converged information society, for enterprises in Japan tolead the national economy by realizing the creation of new business and adapting
current businesses to the more sophisticated environment, and to bring about thelargest benefits of the society of this kind, it is required to take measures proactively
in industry-academia-public partnerships to address the above-mentioned
challenge. Likewise, it is the demands of the current digital age to achieve higher
level security than ever before as a quality feature of services by using Japan’s
advantages developed over years, including the provision of high-quality services,
the enterprise management to build stakeholder confidence, and the creation of afair market environment supportive for such business practices. All of these efforts
to meet the new demands will become a source of corporate values and international
12

competitiveness.

In this line of thought, with regard to the IoT systems for realizing new services in
the interconnected and converged information society, enterprise management, andbusiness environment supportive for them, the Government will take the following
strategic approaches.

5.1.1 Creation of Secured IoT Systems

Given the prospect for the massive use of the IoT systems during the Tokyo 2020,
the success of this world event will not be achieved without industry-academiapublic collaboration to make up-front investments in the assurance of high levelsecurity as a quality future in the IoT systems. Without such a joint effort, it is alsodifficult for enterprise in Japan to create new business and new employment
opportunities by utilizing the IoT systems.
Aiming at creating the secured IoT systems capable of meeting market needs by
2020, and subsequently enhancing the international reputations of Japan’s IoT
systems, the Government will make efforts as follows.
(1) Promoting New Business Harnessing Secured IoT Systems

For an IoT systems-related new business to become successful, it is imperative toachieve high level security as a quality feature, which is the base of competitiveness.
The IoT systems will not become intrinsically secured, however, just by retrofitting
security, which would rather cause a large increase in cost. In this context, theGovernment will promote the idea of “Security by Design,” an approach toincorporate the assurance of security into the initial phase of the planning anddesign of the entire IoT systems including the existing systems connected to them.
More specifically, as to IoT systems-related business, the Government will promotesecurity measures for these systems in a cross-sectoral manner, based on the
Security by Design approach, and will give its prioritized support to the growth ofsuch new business.
(2) Improving Structural Frameworks for IoT Systems Security

For the improvement of socio-economic vitality and sustainable development, it is
crucial to stimulate business innovation in IoT systems-related large scale businesswith the pertinent cross-cutting coordination among stakeholders of industries,
academia, and the public sector. In this course, such business should be promotedin the Security by Design approach. To make it possible for relevant stakeholders
to collaborate based on mutual confidence and each stakeholder’s self-motivated13activities, it is necessary to build a common understanding on relevant mattersregarding security measures required for the business concerned, e.g. the goals,
means, and durations, and to clarify the tasks of relevant stakeholders on that basis.

For example, the development of highly trusted Intelligent Transport Systems (ITS)
concerns multi-stakeholders of industries, academia, and the public sector, including
relevant governmental bodies, enterprises, and research institutes. It is expected
that: these stakeholders first develop objective insights on both of the coexisting
advantages and risks, which would be brought by the adoption of ITS; second, theybuild a common understanding on related factors, e.g. required security measures,
their implementation methods, and durations; then, based on these recognitions,they decide each stakeholder’s tasks clearly. In this way, they can accelerate theircollaborations based on mutual confidence and each stakeholder’s self-motivatedactivities, and it will result in effective and high value-added business.

In this view, among the government-led IoT systems-related large scale businesses,
those possibly having substantial impacts on socio-economic activities will behandled by the Cybersecurity Strategic Headquarters. The Cybersecurity Strategic
Headquarters will promote the consistent and exhaustive implementation ofrequired measures for them, by implementing program planning, policy formulation,and overall coordination required for cross-cutting cybersecurity measures,
facilitating organized and converged coordination among relevant governmental
bodies and entities, and by other appropriate ways.

(3) Considering Approaches for Enhanced IoT Systems Security

For the timely introduction of the IoT systems, which are assured with a high levelsecurity as a market-expected quality feature, in the market, appropriate security
measures must be taken in the whole supply chain of the IoT systems. This meansthat stakeholders will need a policy platform to build a common understanding on
security measures required for the entire IoT systems as well as for the individualcomponents of the IoT systems. In addition, they can challenge new business
opportunities more easily, if there are safety guidelines and/or reliability indices,
including those from security perspectives, as required in progressively introducing
the IoT systems into the market. For these reasons, the Government will, in
collaboration with industries and academia, establish comprehensive guidelines
and standards for IoT systems security, including the components of the IoT systems,
such as M2M (Machine to Machine) devices and wearable devices, in the energy,
automotive, medical, and other relevant industries.
Meanwhile, it is impracticable to provide the secured IoT systems, unless necessary
14

measures are taken, e.g. releasing and installing security patches or software
updates, by quickly pinpointing technical problems developing in cyberspace. The
Government will seek measures for relevant parties to make concerted efforts to:
examine the vulnerabilities of the IoT systems and devices comprising the IoT
systems; encourage the suppliers of the IoT systems and devices to take necessary
actions to modify detected vulnerabilities; and elaborate to create specific means to
inform users of the IoT systems and devices about safeguard measures to fix thedetected vulnerabilities. Similarly, the Government will promote relevant parties’
collaboration to: synthesize and analyze the data on security quality and threats
detected in the use-phase of the IoT systems; feedback the results of the synthesis
and analysis to stakeholders, such as IoT systems developers; and realize andprovide more secured and higher-quality services.
(4) Implementing Technological Development and Demonstration Related
to IoT Systems Security
For the promotion of new business creation utilizing the IoT systems, it is necessary
to advance technological development and other measures to assure security, byaddressing risks associated with the procurement and introduction of unreliable
and low-end devices, based on the understanding that IoT system components havethe characteristics different from those of conventional information andcommunications devices, for example, in terms of longer life cycle from design todisposition and limited throughput capacity.
From this standpoint, theGovernment will work on the development and demonstration of ICTs in which suchcharacteristics of the IoT system components are incorporated.

Besides, it is crucial to take security assurance measures for the entire IoT systems,
for the purpose of providing services with immense added values by using thesystems composed of a variety of networked physical objects. The Government
will work on the development and demonstration necessary for the examination of
IoT system-related security measures and others, such as the development of asystem testing environment, the methodological development of risk analysis andevaluation on the entire systems, the confirmation methods of the authenticity of
hardware including IC chips, and social sciences research as well.

5.1.2 Promotion of Enterprise Management with a Security Mindset
Enterprise management in the interconnected and converged information society
requires, in addition to the existing cybersecurity measures, more comprehensive
and enhanced actions for the creation of new business and other business activities,
in terms of the monitoring and assessment of security risks and appropriate
15

investment decisions on management resources, the promotion of the adoption of
security functions in products and services, cybersecurity human resources
development, the improvement of organizational cybersecurity capabilities, andothers.
For this reason, the following will be undertaken to promote the enterprisemanagement with a security mindset at enterprises in Japan.
(1) Changing the Thinking of Senior Executive Management

It is indispensable for enterprise management that senior executives utilize theirbusiness-critical systems and trade secrets, with recognition of their strategic values
and roles. In bringing products and services in which high level security is assured
as a quality feature to the market, and in making management decisions for new
business creation, cybersecurity knowledge has become a basic competency
required for enterprise senior executives. For the enhancement of Japan’s socioeconomic vitality as well as sustainable development, it is necessary that moreenterprise senior executives will grasp such societal changes precisely, and raiseawareness of cybersecurity measures not as an inevitable “cost” of business but asan “investment” for more progressive management. To this end, the Government
will build: a guiding framework that enables stakeholders, such as the market andinvestors, to evaluate properly enterprises’ efforts to address cybersecurity as a
critical management challenge; and a framework that gives financial advantages,
including a fundraising aspect, to enterprises making such efforts. Similarly, theGovernment will implement collaborative awareness raising activities with theprivate sector to cultivate enterprise senior executives’ understanding on
cybersecurity.
Meanwhile, to incorporate cybersecurity in their business strategies, it is necessaryfor enterprises to assign a chief cybersecurity executive at the board level. To thisend, the public and private sectors will work together, aiming that Chief Information
Security Officer (CISO)’s functions will be adequately positioned at the senior
executive management level of each enterprise.
(2) Fostering Cybersecurity Workforce for Advanced Business Management

To leverage cybersecurity perspectives and capabilities in enterprise management,
it is necessary for both senior executive management and cybersecurity
professionals to share their corporate management strategy and the directions ofcybersecurity challenges and solutions. The Government is planning to increase
the variety of layers of intermediators, who are capable of: understanding
management policies decided by senior executive management; presenting
16

cybersecurity visions; and facilitating communication between senior executive
management and cybersecurity professionals.

As cybersecurity measures have become indispensable in enterprise management
and business strategies, there are increasing organizational needs for enterprises todevelop cybersecurity talent as their in-house workforce. To respond to suchneeds, the Government will examine long term human resources strategies andperformance appraisal methods, taking into consideration cybersecurity-related
career paths, in other words, those for cybersecurity professionals, intermediators,
senior executives responsible for enterprise risk management including
cybersecurity risk management, and others, and will encourage senior executive
management to adopt such cybersecurity workforce development policies.
(3) Strengthening Organizational Capabilities

In the interconnected and converged information society, installing assured security
in products and services will enhance enterprise competitiveness and will lay thefoundations for the continuity and progress of enterprise activities. In this context,
the Government will seek to increase understanding of the value of the “Security by
Design” approach among relevant actors working on products and services. Fromthe viewpoint of the protection of trade secret and business continuity, theGovernment will promote and disseminate information about effective business
management, e.g. the promotion of organizational management based on risk
analysis, and will work on necessary actions to enhance cybersecurity throughout
the inter-organizational supply chain.

Moreover, with regard to the improvement of response capabilities against
cybersecurity incidents, such as cyber attacks that would pose serious business risks
to enterprises, it is encouraged that enterprises will adopt necessary measures, suchas creating and operating a CSIRT (Computer Security Incident Response Team) withliaison functions for incident detection and response; developing plans and tools for
rapid response to and recovery from cybersecurity incidents; conducting cyber
exercises; and improving corporate business functions for more effective public
communications. Noting the effectiveness of such measures, the Government will
promote enterprises’ efforts for the aimed improvement in word and deed.
In addition, the Government will provide its support and advice to enterprises bycreating the guidelines of and other information on cybersecurity-related
management, including the improvement of organizational cybersecurity
mechanisms under the leadership of senior executive management, effective
measures based on the latest trends in cyber attacks, damages, and others, andinformation disclosure policies; the Government will also work to establish a17

framework for objective evaluation of enterprises’ activities taken on the basis ofsuch support and advice by using certain evaluation methods, such as third party
certification. As for information sharing, including information on measurerelated challenges, best practices, and the latest trends in cyber threats and incidents,
the Government will support the further advancement and expansion of information
sharing networks in the private sector and between the public-private sectors,
including platform building for information sharing by actively utilizing
incorporated administrative agencies with cybersecurity-related knowledge andexperiences, as well as organizations and other entities with incident information
sharing and analysis functions, e.g. ISACs (Information Sharing and Analysis Centers).

5.1.3 Improvement of Cybersecurity Business Environment

For Japan’s IoT Industry 5 and other ICTs-based digital businesses to become
internationally competitive and subsequently become the engines of the national
economy, and for Japan to build capacities for the self-reliant assurance ofcybersecurity, it is required to develop: a domestic environment necessary forcybersecurity-related businesses to become a growth industry; and a fair market
environment in Japan as a basis of every business. The Government will implement
the following measures, aiming at the improvement of business environment whereassured cybersecurity and enhanced international competitiveness of enterprises inJapan can be based.
(1) Promoting Cybersecurity-related Businesses

Along with the growing IoT industry and associated businesses, it is anticipated thatthe demand for cybersecurity-related businesses, including consulting and humanresources development business, will be further increased in the future. The
Government will support the development of cybersecurity businesses, for example,
by fostering enterprises having a potential for a large scale business at home andabroad and business ventures, and so on, so that they could meet the increasing
demand and become a growth industry as a whole.

Initially, for the development of global networks to collect cyber-related informationand for the promotion of intelligent business with data analysis and information
service capabilities in this regard, the Government will work to establish leading
projects of Japan’s cybersecurity-related businesses, by taking measures, such as
extensive and intensive investment using sovereign wealth funds (SWFs) in the5

Industry related to IoT systems, including the provision of devices and services.
18cybersecurity field.

Meanwhile, given that the utilization of secured cloud services is considered to beeffective for small and medium sized enterprises and other entities having adifficulty in building sufficient security environments by their own efforts, theGovernment will promote the wide implementation of relevant measures, including
security audit regarding cloud services.

Additionally, in the cybersecurity field that requires high maneuverability to address
its constant diversification, it is critical to vitalize business ventures and otherenterprises striving for innovative new business and technological development.
For this reason, the Government will utilize SWFs to undertake activities in the
cybersecurity field, such as: the promotion of collaborative research anddevelopment (R&D) among domestic and foreign business ventures, includinginternational exchange programs; the promotion of collaborative R&D between
public research institutes and business ventures; and the development of businessventures by taking advantages of such R&D achievements.

Furthermore, to promote cybersecurity-related businesses, it is necessary toundertake the review of the existing mechanisms flexibly. The Government will
work on necessary reviews, including the clarification of the applicability of the
copyright law to reverse engineering 6 for security purposes and the reexaminationof necessary mechanisms.

(2) Developing Fair Business Environment

For building economic systems that always spur innovation and produce corporate
profits, it is essential to protect the values of technological information, including
enterprises’ core technologies and production expertise. The Government will
implement necessary measures, including: legislative measures to safeguard
enterprises’ intellectual property more firmly and to enhance the measures taken in
the case of violations; awareness raising activities; and practical training andexercises.
Meanwhile, the Government will take a strict action against any
reprehensible conduct using security as an excuse or a reason to produce negative
effects on international trade rules and agreements.
(3) Improving Environment for Japanese Enterprises’ Global Operations

For Japan’s Internet of Things industry and cybersecurity-related businesses tobecome internationally competitive and subsequently lead the national economy as
A practice or a process of analyzing and disassembling software and hardware to uncover structures,
specifications, purposes, element technology, and others.

619

a growth industry, Japan’s policy perspectives in this regard must be fully
incorporated in international frameworks, including international rules and norms.
Working in tandem with industries and academia, the Government will act as a
global leader in international discussions for establishing the internationalframeworks of mutual recognition arrangement regarding the international security
standards as well as the evaluation and certification mechanisms of the IoT systems,
including control units; the Government will also work on information sharing andthe transfer of Japan’s best practices in international settings.

For the international operations of Japan’s IoT industry and cybersecurity-related
businesses, it is essential to assure security in social infrastructure abroad, such as
the security of data produced and circulated in the IoT systems. From thisstandpoint of view, the Government will support the development of necessary
mechanisms for cybersecurity as well as outreach and awareness activities in the
Association of Southeast Asian Nations (ASEAN) and other countries that havestrong economic ties with Japan.
In addition, so-called “supply chain risk 7 management” has become critical, as theinternational operations of Japanese enterprises have expanded in recent years.
Taking it into consideration, the Government will promote supply chain risk
management, for example, by promoting necessary R&D as well as bilateral andregional cooperation with ASEAN and other countries.

Risks existing in the processes of design, production, procurement, installation, and operation of devices(including IC chips) and systems; these risks include a risk that viruses and malicious programs might beinstalled during these processes.

720

5.2. Building a Safe and Secure Society for the People
In recent years, there have been a growing number of incidents seriously threatening
the people’s living, particularly, the security of individual personal information andproperties; and associated damages have become more grave and widespread.
Under the circumstances in which the cyberspace environment will be further
drastically evolving with the expanding IoT systems, the launch of the Social Security
and Tax Number System (the My Number system) operation, and so on, a safe andsecure society for the people cannot be built, unless multi-layered cybersecurity is
assured by relevant multi-stakeholders, from governmental entities, local
governments, and cyber-related business operators, to private enterprises and eachindividual citizen.

The functions and services of CII and those of the governmental bodies are themission-critical infrastructure for the people’s living and socio-economic activities.
Since it is highly likely that any interruption of these functions and services willcause direct and significant consequences to the people’s safety and security, it is
crucial to take all possible measures to address and prevent such events. It isnecessary to take approaches based on “mission assurance” in which mission
owners should analyze risks and should have discussions with asset owners fromthe viewpoint to accomplish the functions and services of CII or the governmental
bodies. Mission owners should ask comprehensive decisions of senior executives,
providing information on vulnerabilities including resultant risks.

While Japan will certainly draw the world’s attention towards major international
events, including the Tokyo 2020, it is anticipated that these events will also attract
malicious actors’ attention for cyber attacks and other cyber-related threats. As amatter of national prestige, Japan is determined to make concentrated efforts toaddress cybersecurity concerns, in close coordination among relevant stakeholders.
Furthermore, Japan will maintain and advance knowledge, skills, and experiences tobe gained from these future occasions, as precious national assets that will bemeaningfully utilized for the people’s safety and security.

In this view, aiming at responding to cyber threats and subsequently building asociety where the people can live safe and secure lives, the Government will
implement the following measures.

5.2.1 Measures for the Protection of the People and Society
Protecting the people and society from cyber threats requires the secured and stableprovision of devices and services comprising cyberspace, as the essence of a safe
21

environment for cyberspace users.
It also requires self-motivated efforts ofcyberspace users, including individuals, enterprises, and organizations, to raise theircybersecurity awareness and literacy, and take cybersecurity measures voluntarily.
Additionally, for inhibiting malicious behaviors and other threats in cyberspace, it is
crucial to enhance necessary measures proactively to track incidents and preventthe recurrence of the incidents, together with preventive measures against potential
crimes and threats in cyberspace.
(1) Building a Safe and Secure Cyber Environment for Users

Private enterprises, including digital device manufacturers, Internet service
providers, network management business operators, and software developers, arethe major providers of the components of cyberspace, such as devices, networks,
and applications. Similarly, tools to combat cyber risks are also provided mainly by
the private sector.

Besides a pursuit for convenience, these cybersecurity-related business operators
are encouraged to take the Security by Design approach by which security assurance
is embedded into the initial phase of system planning and design, and give adequate
explanation about this embedded security feature to their customers, while being
aware of their responsibility to eliminate vulnerabilities in all of their services andproducts. They are also encouraged to make their efforts, in close coordination
with the Government and relevant governmental entities, to improve cyber attackrelated incident detection and analysis functions, and take necessary actions, suchas issuing security alerts and tips for their customers and general users.

Therefore, the Government will promote: information gathering regarding
vulnerabilities, e.g. software vulnerabilities; and the coordination and enhancementof the systems to monitor the Internet and detect cyber attacks and other cyber
events.
In order to protect the users of cyberspace from cyber risks which require urgent
attention, such as a possible exploitation of a vulnerable device for being used as aspringboard of a cyber attack, and to build a safe and beneficial Internet
environment, the Government will elaborate necessary measures to prevent adamage possibly induced by malware infection, in addition to provide security alerts
and tips for the user(s) of a compromised device.
Moreover, there are ongoing efforts towards 2020 to improve Internet
communications environments for foreign visitors coming to Japan, e.g. expanding
public Wi-Fi spots. Under the circumstances, the Government will reexamine
necessary measures from the viewpoints of cybersecurity as well as user22

friendliness.

(2) Promoting Security Measures Taken by Users of Cyberspace

Regarding the Internet use with personal computers, smartphones, and otherdevices, on the one hand, public awareness and knowledge of cybersecurity has
hardly reached a sufficient level; there is another concern, on the other hand, in thecurrent environment where cyber risks have become more complex and diversified,that Internet users with insufficient cybersecurity awareness would become victims
and would end up becoming offenders unknowingly.

To address such concerns, and to support the self-help efforts of the public orInternet users, the Government will promote outreach and awareness raising
activities in coordination with relevant stakeholders, such as the “Cybersecurity
Awareness Month” and awareness raising of appropriate actions against malware
and suspicious emails. Particularly, the Government is planning awareness raising
activities for the youth, more specifically those who are just about to become theusers of cyberspace, along with their parents or guardians. Additional efforts will
be made to promote tailored awareness raising activities for those who do notbelong to any organizations, such as a school or a company, for they often do nothave enough opportunity to learn about cyber threats and cybersecurity measures.
The Government will also continue to promote human resources development
policies to foster cybersecurity experts who are capable of answering Internet users’questions and concerns, and the activities of these cybersecurity experts as well.

In addition to comprehensive public awareness raising activities implemented by
the Government and relevant entities, it is encouraged to revitalize local communitybased outreach and awareness raising activities, for such activities are suitable totake multifaceted approaches to meet the diverse needs of the people who havedifferent backgrounds in terms of age groups, occupations, life styles, and others.
The Government’s actions will include strong support for grass-roots local activities
that enable the promotion of outreach and awareness raising activities at the local
level in collaboration among multi-stakeholders of industries, academia, and the
public and private sectors.
For the assurance of the people’s security and safety, it is critical to raise awarenessnot only for individuals but also for organizations and entities, such as private
enterprises or organizations engaging in a wide variety of economic activities, local
governments responsible for administrative services directly related to local
residents, and public entities including educational organizations handling hugevolumes of personal information of students, school children, and their parents or
guardians. Especially, for organizations and entities which have difficulties to take23

necessary cybersecurity measures by themselves, such as small enterprises andsmall local public entities, the Government will promote necessary measures, taking
into consideration that it requires the coordinated efforts of the stakeholders of theGovernment, relevant entities, industrial organizations, and others, to support
awareness raising measures, including the organization of seminars, the formulationand dissemination of cybersecurity-related guidelines, the improvement of thestructures to share cybersecurity information concerning the latest methods ofcyber attacks and other relevant matters, and the implementation of training andexercises.
(3) Enhancing Measures against Cybercrimes

Along with the increased interconnectivity of cyberspace and physical space, thenumber of cybersecurity incidents closely related to individuals and enterprises –such as illegal money transfers by exploiting Internet banking, stealing information
by targeted attacks, and phishing – has drastically grown. There is also a rise in thenumber of breaches of personal or confidential information, including a large-scalepersonal data breach; as a result, such repeated cybercrimes have become serious
social concerns.
Without advanced cybercrime response and investigative
capabilities, it is difficult to capture the reality of malicious cybercrimes, control
cybercrimes appropriately in accordance with laws and statutes, and be ready tohandle new methods of cybercrimes that would likely emerge in the near future.

For these reasons, the Government will promote the improvement of structuralarrangements for: the enhancement of information gathering to obtain a better
understanding of cyber threats; the advancement of cybercrime-related
investigative capabilities; cybercrime control, international coordination, and more.
In addition, since advanced technical knowledge and skills are essential toinvestigation, cybercrime control, and the prevention of damage and the spread ofdamage, the Government will promote the accumulation of technical know-how,
technologies, and other skills necessary to this end, by improving the structuralarrangements for digital forensics, such as the technological advancement for
malware analysis and others as well as the sophistication of the systems to monitor
the Internet and detect cyber attacks and other cyber events. Likewise, theGovernment will promote human resources development and technologicaldevelopment soundly. Furthermore, for the purposes of cybercrime investigationand prevention, the Government will aim at the active use of knowledge andexperiences of the private sector and the enhanced public-private partnerships
including personnel exchange programs between the public and private sectors.
Since cooperation from cyber-related enterprises is indispensable for the assuranceof cybercrime traceability, the Government will take measures necessary to make24

progress in this area. Especially with regard to the management of stored log data,
the Government will encourage relevant private enterprises to take appropriate
actions based on the revision of the “Guidelines for Personal Information Protectionin Telecommunications Business.” 8

5.2.2 Measures for Critical Information Infrastructure Protection
Various kinds of social infrastructures have ensured the people’s living andeconomic activities, and a wide range of information systems has been used for thefunctions of these social infrastructures. In the circumstances, the public andprivate sectors must work together to protect CII, in particular, information andcommunications services, electric power supply services, and financial services, ofwhich the functional failure or deterioration would risk enormous impacts to thepeople’s living conditions and economic activities. Such task cannot be entirely
designated to the Government as a sole stakeholder, leaving the private sector withno responsibility, or vice versa; rather, it calls for strong public-private partnerships.
As CII is required by its nature to provide a continuous supply of service, for its
protection, it is crucial to reduce the occurrence of system failures caused by cyberattacks or other reasons to the minimum extent; it is also crucial to carry out early
detection of any system failure and prompt recovery from damage or failure.
The Government established the third edition of the “Basic Policy of Critical
Information Infrastructure Protection” 9 and identified critical information
infrastructure sectors. 10 Based on this CII policy, the Government has promoted
various measures, including the enhancement of safety standards and awarenessraising, the implementation of training and exercises, and the improvement of
information sharing arrangement between the public and private sectors.
Having achieved substantial results in protecting Japan’s CII, these existingmeasures will be implemented as they have been. Meanwhile, these measures

2004 Ministry of Internal Affairs and Communications Bulletin No. 695. The Guidelines were
established with the purposes of improving the user-friendliness of telecommunications services andprotecting consumers’ rights and interests, by establishing basic procedures respected bytelecommunications business operators in terms of proper handling of information considered as secrecyof communications and other personal information.

8

Established on May 19, 2014 by the Information Security Policy Council: revised on May 25, 2015 by the
Cybersecurity Strategic Headquarters.

9

Information and communications services, financial services, aviation services, railway services, electric
power supply services, gas supply services, government and administrative services (including local
governments), medical services, water services, logistics services, chemical industries, credit card services,and petroleum industries.

10

25

would easily lose their effectiveness and become obsolete without any modification
to match the needs of the constantly diversified social and technologicalenvironments related to CII. The Government will make efforts to regularly
reexamine the existing measures and activities as indicated in the following sections,and elaborate and promote the specific approaches, including the further
enhancement of cybersecurity, of these measures. Meanwhile, CII operators andtheir competent ministries have conducted critical information infrastructure
protection (CIIP) against cyber attacks by setting the safety standards, including
mandatory standards and guidelines; to this extent, with regard to CII sectors having
the original standards of service maintenance and safety assurance stipulated by aspecific law regulating a certain industry, the Government will carry out a constantreview of the safety standards, taking account of current environmental changes incyberspace.
(1) Conducting Constant Review on the Scope of CIIP

Due to social environmental changes, the accumulated relevant knowledge andexperiences, and more, it has become necessary to include a certain sector, which is
not currently identified as a CII sector, in the CII sectors, as the impact of theinformation system failure of the said sector is assumed to be serious. For this, theGovernment will conduct a constant review on CII itself. It should be noted that it
is not necessary for a newly added CII sector to implement exactly the same CIIP
measures as other incumbent CII sectors have done; because of an increasing
number of the CII sectors, it may become difficult, too, to implement common
measures across the CII sectors. From these standpoints, the Government will takenecessary actions, including the classification of the CII sectors, based on thecharacteristics of each sector, such as the degree of interdependence with othersector(s), the services it has provided, and any law concerning that sector.

Meanwhile, as for the current CII sectors, for more reliable and secured service
provision, it is essential to assure “cross-cutting sector-wide protection,” rather than“pinpoint protection” with each CII operator’s limited effort. In this sense, theGovernment will conduct a review on the scope of “CII operators” regularly. For
example, the measures exclusively applied to the major operators would be
expansively applied to small and medium sized enterprises; or, they would be more
inclusively applied to peripheral businesses, too, such as relevant outsourcing
contractors and major affiliated businesses that are indirectly related to the services
provided by the CII operators.
In addition, consideration should be made to provide protection for private
enterprises outside the CII sectors, since CII is not the single target of cyber attacks.
With regard to Japan’s leading enterprises and those critical to national security,
26

including those requiring certain measures, such as a physical protection measureof nuclear materials, the Government will further consider necessary actions, suchas enhancing information sharing arrangements, whether or not these enterprises
fall in the definition of CII.
(2) Ensuring Effective and Prompt Information Sharing

As cyber attacks have become more complex and sophisticated, in order to counter
diversified cyber threats appropriately, the public and private sectors must closelycollaborate in sharing information on system failures possibly caused by cyberattacks. To make information sharing more active, it is essential to relieve CII
operators’ psychological burden of potentially losing the credit or ruining the
reputation of their businesses if providing information to a relevant party, andenable them to recognize the advantages of such action instead. The Government
will encourage CII operators to create a common understanding on making
appropriate modifications of information to be provided, such as concealing
informers’ identities and specifying the scope and limit of information to be shared,
and will create an environment where informers will not suffer any unreasonable
loss or disadvantage from providing information. As for those handling theprovided information, they are required to have adequate information analysis
capabilities; and issue security warnings and alerts in a timely and appropriatemanner based on the provided information. The Government will strive to create
an interactive and advanced information sharing environment, including building
platforms as a basis of collecting, analyzing, and sharing provided information sothat CII operators can properly obtain information necessary for CIIP from cyberattacks.

In view of the year 2020, more effective and faster information sharing is requiredin building a world-class defense framework against cyber attacks. Given that it iseffective to collect not only information on system failures at or above a certain level,
which are subjected to reporting by a specific law regulating a certain industry
and/or other regulations, but also information on minor system failures as well as
those showing the signs of cyber attacks or predicting cyber attacks, the Government
has made efforts to collect such information, based on a consensus among relevant
stakeholders; in the circumstances, the National center of Incident readiness andStrategy for Cybersecurity (NISC) and the competent ministries of CII operators will
work in tandem more closely and engage in information gathering proactively. The
Government will also work to strengthen necessary coordination among relevant
governmental entities, particularly to accumulate critical information at the NISC for
the purpose of building a structure for prompt information sharing with necessary
measures, such as building a hotline between the NISC and CII operators, improving
27

information sharing methods and procedures, and adopting automatic information
processing.

When a CII operator reports a cyber attack to relevant governmental bodies
responsible for incident response, the governmental bodies will work, as acoordinated effort, on situational awareness to obtain an accurate understanding ofwhat is happening, while helping the CII operator(s) manage the critical situation.
The Government will extensively share obtained information on the occurred
incident, including attackers’ methods, with the governmental bodies, CII operators,
and other relevant parties, to prevent the damage from becoming more serious.

For the purpose of ensuring the effectiveness of these measures, the Government
will conduct cross-sectoral training and exercises for stakeholders of the public andprivate sectors, and will continue to make necessary improvements.
(3) Offering Tailored Support to CII Sectors

As for local governments, their responsibility and the cooperative measures takenby the Cybersecurity Strategic Headquarters to support them are prescribed underthe Basic Act on Cybersecurity. All local governments, regardless of their scales,
have a unique status, as they are required to meet the security standards similarly
to those of the governmental bodies and government-related entities, because of
their functions, e.g. handling sensitive information. There is an environmental
transition expected in local governments, for they will need to adopt new systems
due to the nationwide introduction of the My Number system. The Government
will provide necessary assistance, in accordance with the Basic Act on Cybersecurity,
for their security assurance, and will examine and take necessary measures
regarding the information systems of local governments, with the object ofstrengthening cybersecurity for the operation of the My Number system.

At the same time, the Government will take necessary cybersecurity measures,
based on consideration of effective approaches, including operation systems
development and improved operational frameworks build upon advanced
cybersecurity measures; those measures include the separation of the systems forhandling the affairs using the individual numbers prescribed under the Act on the
Use of Numbers to Identify a Specific Individual in the Administrative Procedurefrom the Internet. The Government will also enhance monitoring and oversightmechanisms based on professional and technical knowledge and experiences, incoordination with relevant entities. Furthermore, aiming at building a monitoringand detection mechanism to supervise the coordinated and connected national andlocal operation systems of the My Number systems as a whole, the Government willbuild frameworks with capabilities of monitoring and prompt detection of28

cybersecurity incidents, taking account of possible information sharing with theGovernment Security Operation Coordination team (GSOC). Additionally, withregard to the intergovernmental and public-private coordination for authentication
at the occasion of introducing the My Number system, the Government will also
work to improve environments necessary to make the best balance between
increased user-friendliness and security assurance.

With regard to industrial control systems (ICS), there is a concern that IT
malfunction may evoke the disruption of security assurance and the interruption of
the provision of sustainable services. Smart meters in the electric power supply
services sector and factory automation systems in chemical and petroleum
industries are good examples. For the robust security assurance of ICS, it isnecessary to reaffirm the importance of assuring the safety of ICS, by implementing
information security measures for ensured continuous service delivery.

In addition, as for ICS, there has been the shift to the openings of technologies andnetworks, e.g. the use of standard products and the introduction of open-standard
protocols. As a result, the use of ICS has become popular, for example, due to thereplacement of the existing equipment; on the other hand, this has created apressing need for addressing vulnerability issues and unauthorized access. Under
the circumstances, the Government will collect, analyze, and disseminate useful
information, e.g. information on vulnerabilities of ICS and ICS equipment andinformation on cyber attacks. It will be done based on the information sharing
arrangement in a good balance with the sharing of information on ICS and other than
ICS. The Government will promote the use of internationally approved third-party
certification schemes that enable objective evaluations on the level of satisfactory
security performance, taking into account that specialized knowledge and skills arenecessary for the procurement and operation of ICS and other associated equipment.

5.2.3 Measures for the Protection of Governmental Bodies
As for the governmental bodies and government-related entities, the Government
has addressed cybersecurity assurance by establishing and utilizing, as a main
measure, the common standards for the governmental bodies. Up to these days,
the Government has worked on further improving the standard of government-widemeasures, and reflecting newly emerged threats and challenges in the common
standards, where necessary.

Meanwhile, it is expected that social environment will be transformed more rapidly
by 2020. It is anticipated that cyber attacks against the governmental bodies andgovernment-related entities will become more sophisticated and more29

manipulative; and that IT-related products and services would become more multifunctional and more diversified. In anticipation of such rapid transformation, theGovernment must be ready to face a dramatic increase in cyber threats or
unforeseen challenges accompanied by that. Many of the information systems
currently in the design or development planning phases will be operational in 2020
and required to remain secured for many years to come. Meanwhile, most of
cybersecurity measures cannot work like a quick remedy for cyber threats. In thiscontext, it should be taken into account that cybersecurity assurance in 2020 cannot
be achievable unless proactive actions are taken well in advance before new threats
and challenges emerge.

Under the circumstances, the Government will focus its forward-looking effort on
the priorities outlined in the following sections, on the premise of the continuous
full implementation of the ongoing cybersecurity measures, for the governmental
bodies and government-related entities to take flexible and prompt counteractions
to address not only existing threats and challenges but also unforeseen threats andother emerging concerns; at the same time, the Government will incorporate thesepriorities timely in the regulations, such as the common standards for thegovernmental bodies, and ensure the full implementation of these regulations bycertain measures, such as audit and daily learning.
(1) Strengthening Defense Capabilities of Information Systems andPromoting Multi-layered Measures against Presumed Cyber Attacks
To respond to cyber attacks, such as targeted attacks apparently aiming at stealing,damaging, or altering information, the Government will take government-wide,
multi-layered measures based upon the assumption of cyber attacks. This mustalso include contingency plans for the possibility – a certain entity would be used asa springboard for the entity that is the original target of a cyber attack. In
promoting these measures, the Government will ensure that they are based on thecommon standards for the governmental bodies, and will conduct risk analysis
intending to perform its administrative responsibilities, for the optimization of thesemeasures as the entire governmental bodies.

i. Preventing cybersecurity incidents
The Government will robustly implement preventive measures, such as giving
support for announced software vulnerabilities and detected malware and utilizing
electronic signatures and certification technology, and will make prompt and flexible
readjustments corresponding to environmental changes.
More specifically, theGovernment

will strengthen:30

cybersecurity-relatedinformation gathering and analysis functions; and the organizational arrangements
for government-wide information sharing and for internal and external
coordination of the governmental bodies. The Government will also work on
supply chain risk management and other measures to incorporate cybersecurity
assurance into the planning and designing phases of information systems.
Furthermore, the Government will make the prompt and flexible readjustments ofthe measures taken for the information systems in operation, in view ofenvironmental changes.
Additionally, the review and improvement of theimplementation status of information security measures will be undertaken throughpenetration tests and other examinations.

ii. Preventing damage and the spread of damage
It is extremely difficult to prevent all cybersecurity incidents, such as malicious
penetration into information systems by cyber attacks exploiting unrevealed
vulnerabilities or using malware, including Zero-Day attacks. For this reason,
while aiming to prevent the outbreak of cyber attacks, the Government remains
equally determined to respond to cybersecurity incidents effectively and in a timely
manner in order to obtain early situational awareness and to limit the harmful
consequences of an attack as well as the spread of damage that the attack mightcause.

More specifically, the Government will work on the enhancement of GSOC’s
functions covering the entire governmental bodies to detect and analyze
cybersecurity incidents; the enhancement of a CSIRT, situational awareness, and risk
management functions of every governmental body; and the acceleration andsophistication of information provision and sharing in the case of a cybersecurity
incident. At the same time, the Government will implement training and exercises
for incident readiness and subsequently incorporate lessons learned from suchtraining and exercises in its cybersecurity policies and measures; the Government
will also aim to: improve the capabilities of personnel with designated cybersecurity
duties and the coordination among these personnel; and fully enforce organizational
responses to cybersecurity incidents under the direction of senior executive officersof each governmental body. Moreover, for risk reduction by the improvement ofmonitoring effectiveness and other means, the Government will work on the further
reduction and consolidation of connections to the Internet in the governmental
information systems. Additionally, the Government will strive to: reinforce factfinding activities in the case of emergencies, including critical incidents involving agovernmental body or governmental bodies; share the results of the fact-finding
analysis in order to prevent the damage of the incident from spreading; andincorporate them in the existing measures.
31

iii. Mitigating damage
For mitigating damage over the period starting from the incident occurrence to thecompletion of the initiated emergency measure, the Government will take necessary
measures to prevent the spread of penetration and not to allow attackers toaccomplish the purpose(s) of their attacks.

More specifically, for the purpose of making it harder to carry out unauthorizedaccess to personal information, sensitive information, and other highly confidential
and integral data, i.e. those of which breach and alteration would cause serious
negative impacts on the people, society, and more, the Government will strive toachieve more trusted information management, including the separation of
information systems according to the substance of administrative functions as wellas the nature and quantities of information processed, and the use of operational
regulations. The Government will also accelerate its effort to implement “defensein-depth” measures against targeted attacks, including those concerning system
availability, such as system breakdown. In addition, the Government will work toestablish methods to evaluate priorities regarding the enhancement of: incident
response corresponding to different risks and their impacts; and focused measures
for information systems.
(2) Achieving More Resilient Organizational Response Capabilities

The Government will seek to achieve more resilient organizational response
capabilities for more flexible and prompt responses to accelerating changes.

The following are examples of the planned activities: the review and improvementof organizational arrangements and frameworks to enhance measures concerning
the governmental bodies and government-related entities, by conducting periodic
self-assessment, management audit from an independent perspective, and otherexaminations; and the promotion of risk-based and organized measures for andmanagement of information systems, such as the formulation of risk management
policies and the standards of measures on a basis of risk assessment, theestablishment of a scheme for contingency planning based on consensus of
stakeholders for unforeseen circumstances, and so on. Since there is no panacea
for responding to unknown threats and other cyber concerns, the Government will
also plan to create a community that contributes to the promotion of governmentwide information sharing on cybersecurity incidents and active dialogues. In
addition, since human resources are the key of organized risk management, theGovernment will work to ensure enhanced cybersecurity literacy in the entire staff
including senior executive officers. At the same time, the Government will plan tofoster and acquire cyber talent who will take a leading role to advance response32capabilities of each entity; this will be done by utilizing qualifications and otherspecial skills as one of objective criteria to evaluate individuals’ competencies.
(3) Adapting to Technological Advancement and Change in Business
Performance Styles
To perform administrative functions in a way adjusting to the sophistication andrationalization of administrative affairs by the utilization of multi-functioned anddiversified IT products and services, and in a way to meet the demands of the digitalera, the Government will make efforts to prevent incidents and the deterioration of
security standards due to the inappropriate use of new IT products and services,while paying due attention to cybersecurity assurance.

More specifically, the Government is planning to: collect the government-wide status
data regarding the adoption of new IT products and services as well as theinformation on implemented measures; establish the common measures across thegovernmental bodies; and put them into force, taking into account thecharacteristics of these IT products and services. In terms of the changes in thestyles of performing administrative functions based on the IT use, the relevant

governmental bodies and government-related entities will closely collaborate toadapt the performance styles appropriately, based on assured cybersecurity.
(4) Comprehensively Enhancing Measures through the Extended Scope of
Monitoring and Others

To strengthen cybersecurity throughout the governmental bodies as a whole, theGovernment will strive for the overall enhancement of measures in incorporated
administrative agencies, special corporations closely working with thegovernmental bodies to perform their public functions, and other relevant entities.

More specifically, the Government will work on: the improvement of incident
response capabilities of such entities; the enhancement of audit of such entities by
their competent ministries; and the promotion of cybersecurity measures at such
entities, in accordance with the governmental measures (as described above from
(1) to (3)), taking into consideration their characteristics and others.
The
Government will: particularly add such entities to the subjects of monitoring by the
GSOC in a phased manner, taking into consideration equitable-burden sharing
among beneficiaries; include such entities as the subjects of audit and fact-finding
activities that the NISC conducts as a mandate given by the Cybersecurity Strategy
Headquarters; and carry out other necessary measures. For the enhancement ofthese measures, the Government will examine promptly the necessary revisions of
the relevant laws, in view of possible arrangement for coordination with relevant
33entities having professional knowledge and skills, and will take appropriate actions,where necessary.

34

5.3. Ensuring Peace and Stability of the International Community
and National Security
A free, fair, and secure cyberspace is a shared global space where communications
in a global scale are available, and is a foundation for peace and stability of theinternational community. In particular, Japan firmly believes that recognizing thediversity of values, respecting autonomy and securing people’s freedom of speechand corporate activities in cyberspace based on the rule of law will bring peace andstability to the international community, thereby ushering in prosperity for all.
Indeed, Japan has built an economy and society where an extremely high-quality lifeand sustainable development are possible, through utilizing the benefits of free, fair,and secure cyberspace. On the other hand, domestically and internationally, social
systems’ dependency on cyberspace has been increasing and thus the situation inwhich cyber attacks significantly affect the socio-economic activities in the realworld with sophisticated method and with greater impact is arising. Under thesecircumstances, defending cyberspace from cyber attacks and ensuring its secure useare critically important challenges for peace and stability of the international
community and national security, which must be addressed imminently anddrastically.
Addressing these challenges to ensure Japan’s security, Japan will drasticallyenhance the response capabilities of the whole nation and further engage incooperation and collaboration with the ally and like-minded countries as well as
confidence building measures with relevant states. In addition, from the viewpointof pursuing a free, fair, and secure cyberspace, Japan strongly disapproves of
exclusive possession, control, censorship, the theft or destruction of information by
autocratic regimes as well as malicious use of cyberspace by non-state actors
including terrorists. Japan will proactively contribute to the maintenance ofinternational order and ensure its national security by building peace and stabilityof the international community from the policy of “Proactive Contribution to Peace”
based on the principle of international cooperation.

Under the above recognition, Japan adopts the following strategic approaches forbuilding peace and stability of the international community as well as national
security. For the implementation of these measures, Japan will further advance thecentralization of relevant information including information on cybersecurity
measures of the governmental bodies and relevant entities to the Cabinet Secretariat,
and enhance its common external responses.
35

5.3.1 Ensuring National Security
As all kinds of physical objects, including social systems, are networked andcyberspace is increasingly integrated with the real world, many organizations haveheavily relied upon cyberspace. As a result, cyber attacks have become capable ofcausing tremendous damages to a state’s politics, society, economy, and culture.
Nowadays, cyberspace is a sphere not only of economic activities but also of national
security and intelligence activities.
Disruptive activities, theft of classified
information and alteration of data by organized, well-prepared, and advanced cyberattacks, including those that might be state-sponsored, are actual threats today.

To protect cyberspace from these advanced cyber attacks, it is necessary to takeprompt and appropriate measures based on advanced knowledge at all phases:
prevention, detection, and response.
For this reason, through analyzing
cyberspace in peacetime, Japan intends to further enhance its capabilities of early
identification and situational awareness including the signs of cyber attacks byvarious actors, and of detecting and addressing threats promptly. To this end, it iscritical to strengthen the Government’s functions of information gathering andsituational awareness, including information sharing with foreign governmental
entities, and situational analysis, and to promote cross-sectoral and cross-cutting
efforts comprehensively.

It is necessary for national security to protect the function of social systems ownedby the Government and CII operators from cyber attacks. Regardless of the public
or private sector, a vertically-segmented structure and rigid conventionalism arefavorable conditions for attackers. Based on such a shared understanding, Japan
will further strengthen current cooperation with various relevant actors, andachieve a seamless and multi-layered protection against these attacks. In addition,
Japan will enhance its response capabilities against cyber attacks, which can occur
at any phases, appropriately and accordingly to their scale and level.

Furthermore, bearing in mind that cyber attacks can be easily conducted acrossnational borders, and there are some cases in which cyber attacks might be statesponsored or linked with military operations in the real world, it is essential toproactively promote cooperation and collaboration with the ally and like-mindedcountries or organizations on sharing threat information and human resources
development among others. It is also important to promote confidence building
with other countries.

(1) Enhancing Response Capabilities of Relevant Governmental Bodies

In order to respond to more diversified and complex cyber threats, it is critical to36enhance Japan’s whole resiliency and capabilities.
To this end, Japan will
strengthen the capabilities of law enforcement agencies, the Self-Defense Forces,and other relevant organizations, both in quality and quantity. In order for theseorganizations to play full part, Japan will consider a wide range of effective means
such as reviewing various organizational frameworks, including human resources
development and recruiting, the introduction and learning of latest technologies,
and R&D. In addition, to counter cyber attacks targeting the classified information
owned by the governmental bodies, Japan will promote the efforts related tocounter-cyber-intelligence in the Cabinet Intelligence and Research Office and otherrelevant entities.
(2) Utilizing and Protecting Japan’s Advanced Technology

Japan’s advanced technology is not just for securing Japan’s economic advantages
but also a critical national asset in terms of national security. In particular, actors
who deal with critical information for national security, e.g. technologies related toouter space, nuclear energy, security, and equipment of the Self-Defense Forces, needto keep in mind that critical information could become a possible target of global
cyber attackers.
These actors will take all feasible means to ensure theircybersecurity so that Japan’s advanced technology will be utilized for the assuranceof national security.
Relevant actors will work to increase awareness ofcybersecurity for all people involved in advanced technology, and take necessary
measures, including: enhancing monitoring of and response capabilities against
cyber attacks from abroad; tightening the examination and verification of goods andservices obtained externally; strengthening collaboration between the public andprivate sectors for information sharing and others.
(3) Protecting Governmental Bodies and Social Systems

As the governmental bodies have a mission to defend and support the people’s living
and socio-economic activities, the shutdown of their functions is a significant
concern to the national security. The execution of missions of the governmental
bodies relies on CII and other services provided by business operators responsible
for social systems. These business operators themselves have an importantmission to continuously provide services indispensable for the people and society.
Therefore, ensuring cybersecurity of these CII operators is of extreme importancefor national security and the assurance of the missions of the governmental bodies
as well as the continuous provision of services indispensable for the people andsociety. To this end, it is necessary for these operators, in collaboration with thegovernmental bodies, to take all feasible measures with a clear recognition of how
the effect of cyber attacks on the provision of services will impact the executions of37

the missions of the governmental bodies and the business operators themselves.

In this context, Japan and business operators in charge of CII and other social
systems will further enhance their daily efforts to bring, share, and analyze
beneficial information, such as vulnerabilities and attack information, and address
to threats in a necessary manner. It is also expected to accelerate interactive
information exchange between the public and private sectors.

As the defense authorities, the Ministry of Defense and the Self-Defense Forces willfurther enhance the defense of their own networks and infrastructure, and deepen
coordination with stakeholders relevant to the assurance of the missions of the SelfDefense Forces in light of the possibility that cyber attacks against social systems
indicated above may become a major impediment to the accomplishment of their
missions.

5.3.2 Maintaining Peace and Stability of the International Community

Ensuring both cybersecurity and the free flow of information at a global scale isnecessary for peace and stability of the international community.

Cyberspace is a space where data is transmitted and processed through hardware
and software, which are managed and operated by various actors all over the world,both global and national, and linked by autonomous and cooperative networks. In
order to have active communications as well as social, economic, and culturalactivities in such a space in international nature, it is necessary to ensure
appropriate security of the aforesaid components spreading across the countries in
the world so that people can utilize cyberspace feeling safe and secured.

Through the free flow of information at a global scale, cyberspace has become afoundation for all kinds of social, economic, and cultural activities on earth, and has
promoted mutual understanding across national borders. This remarkable global
nature of cyberspace would be undermined if the authorities divide it with theirexcessive restrictions or control. In addition, in order to ensure security ofcyberspace, it is imperative that Japan will implement measures to create aninternationally stable cyber environment that leads to peace and stability of theinternational community as well as of Japan.

Under this recognition, with a view to build peace and stability of the international
community, Japan will take a leading role as a responsible member of theinternational community, and engage in ensuring cybersecurity throughinternational cooperation with various stakeholders as well as securing the free flowof information at a global scale based on the following policies.
38

(1) Establishing the International Rule of Law in Cyberspace
Recognizing the diversity of actors and values, Japan will take active roles inestablishing the international rule of law in cyberspace, with the basic principle ofthe free flow of information.

i. Developing international rules and norms
Japan is of the view that existing international law is applicable to cyberspace.
With regard to security in cyberspace, Japan has participated in the Group ofGovernmental Experts (GGE) established in the First Committee of the UN General
Assembly, and the GGE submitted a report indicating that existing international law
is applicable to acts using cyberspace. Japan will further actively engage in thediscussions on the application of specific individual international laws, andsubsequently contribute to the development of international rules and norms
regarding cyberspace with the view that existing international law is applicable tocyberspace.

In addition to the GGE, there have been discussions among multi-stakeholders
focusing on the socio-economic aspect, Internet governance and other topics invarious fora, including the UN and its specialized organizations, the Organisation for
Economic Co-operation and Development (OECD), the Asia-Pacific Economic
Cooperation (APEC) and the Global Conference on Cyberspace. Japan will further
cooperate with domestic and foreign stakeholders in these discussions and actively
promote the development of international rules and norms with a view that
ensuring openness, interoperability, autonomy and the free flow of information incyberspace will make a significant contribution to the development of society,economy, and culture.
ii. Materializing international rules and norms

While making efforts to develop international rules and norms for cyberspace, Japan
will proactively proceed with their realization. For instance, in the security field,
Japan will promote confidence building measures, as described later, in cyberdialogues with international organizations and countries based on the results ofdiscussions on the application of a specific individual international law. With
regard to measures against cybercrimes, as a Party to the Convention on Cybercrime,
Japan will promote the expansion of its Parties, strengthen international
cooperation among law enforcement authorities for a prompt and effective
assistance in investigation, and promote international investigation for arrestingtransnational criminals to effectively address cybercrime that easily transcends
national borders. Japan will take an initiative in implementing international rules
and norms and subsequently make contributions to the establishment of the rule of39

law in cyberspace and bring peace and stability to the international community.
(2) Building International Confidence Measures

Cyberspace has become a basis for all kinds of activities, including social andeconomic activities as well as military operations. Under such circumstances, it isnecessary to promote international discussions at the UN and other fora on how toprevent unexpected situations stemming from cyber attacks and share common
understanding among many countries. To this end, Japan will actively provide
information on its fundamental viewpoint and share it with many countries atmultilateral conferences, such as the UN, as well as bilaterally in cyber dialogues andconferences. Moreover, Japan will promote international confidence building by
creating multi-layered contact mechanisms, e.g. points of contact among countries
or the private sectors, for transnational cybersecurity incidents during peacetimeand conduct contact exercises and other measures.
(3) Tackling Activities of International Terrorist Organizations Maliciously
Using Cyberspace
In order for cyberspace to remain a domain that contributes to peace and stabilityof the international community, it is necessary to deter the activities of international
terrorist organizations that have maliciously used cyberspace. With the expansionof cyberspace, non-governmental actors that advocate extremism have been using
cyberspace for malicious purposes such as the dissemination and demonstration ofideas, recruiting and solicitation, and fund-raising for terrorism. Taking into
account the international statements such as the resolutions of UN Security Council,
Japan must carry out measures against such international terrorist organizations incoordination with the international community. For this, Japan will take necessary
measures, e.g. strengthening information gathering and analysis on the activities ofinternational terrorist organizations in cyberspace, including the utilization oftechnologies that gather terrorism-related information on the Internet.
(4) Cooperating for Cybersecurity Capacity Building

As a responsible member of the international community founded on freedom anddemocracy, Japan will actively engage in capacity building of other countries basedon its experience and accumulated knowledge.

It is necessary for various actors around the world to cooperate and address thetransnational threats in cyberspace as the lack of competence of some countries orregions to address these threats would be a risk for the entire world including Japan.
In fact, it is confirmed that many cyber attacks against Japan have come from abroad.
40

In addition, the activities of the Japanese people and companies are globalizing andthe number of people traveling abroad and enterprises expanding overseas are
increasing. With the development of informatization, these activities have become
increasingly reliant on cyberspace and social infrastructure managed and operated
by the countries of their destinations.

For these reasons, cooperation on capacity building to ensure cybersecurity ofcountries around the world would not only contribute to those countries that need
the assistance on cybersecurity but also benefit Japan and the entire world.

With the development of information communications society, Japan has beenpromoting the development of laws and statutes and policy frameworks forcybersecurity, and it has engaged in the assurance of cybersecurity of governmental
bodies, CII operators, other organizations, and individuals; measures against
cybercrimes; human resources development to foster cybersecurity experts; andR&D of cybersecurity technologies. Based on these experiences and accumulated
knowledge, Japan will further actively cooperate on capacity building as a
responsible member of the international community with a basic principle of thefree flow of information. To this end, the Government and relevant entities will
work together on the development of capacity building measures and their efficientand effective implementation.
(5) Developing World-Class Human Resources

In addressing these international cybersecurity efforts, it is necessary for Japan tocontinuously participate in and contribute to international conferences to state its
position and deepen communications with various actors around the world. The
participants of such conferences would be required to have sufficient cybersecurity
expertise as well as understanding on the context of each country’s society, economy,
culture and other aspects. Therefore, Japan will develop, in both the public andprivate sectors, abundant world-class human resources having technical expertiseon cyberspace, well-versed in international relations, international security,international cooperation among other fields, and capable of successfully working
in the international arena.

5.3.3 Cooperation and Collaboration with Countries around the World
By cooperation and in partnerships with countries around the world, Japan willrealize peace and stability of the international community as well as national
security. International cooperation and partnerships also contributes to thestrengthening of international capabilities to counter cyber attacks in which state41

actors might be involved. On the basis of the Japan-U.S. Alliance, Japan will keep inmind its geographical and economic relation or the extent of shared values withpartner countries, and as a responsible member of international community
founded on freedom and democracy, Japan will expand and develop cooperation
with other countries. In addition, from a perspective of avoiding and preventing
contingencies arising from cyber attacks, Japan will make efforts in confidencebuilding, establish international cooperation frameworks in various fields, andensure cyberspace security.
(1) Asia Pacific

The Asia Pacific region has a deep historical connection with Japan, and the flow ofpeople among nations and investment by Japanese companies are increasing. As a
responsible member of this region, Japan will vigorously promote international
partnerships in the cybersecurity field, cooperation towards capacity building, andcollecting and sending information in this region, through many kinds of bilateraland multilateral channels.

Japan has a history of partnership with ASEAN for more than 40 years. In the
cybersecurity field, Japan has a close and cooperative relationship through multiple
channels such as the Japan-ASEAN Information Security Policy Meeting. Throughthe framework of international conferences or joint projects, and the continuous
implementation of various and practical capacity building based on the needs ofeach country, Japan will further deepen and expand cooperation in the cybersecurity
field with ASEAN countries, and actively contribute to the realization of resilient
cyberspace of ASEAN. In addition, considering economic, social, and culturalsituations of each ASEAN country, and the various views towards cyberspace, Japan
will enhance bilateral cooperation with each member country.

Japan will strengthen its cooperation and partnerships with regional strategic
partners that share basic values with Japan.
Japan will enhance bilateral
cooperation in the cybersecurity field through various channels between thosecountries, such as the sharing and utilization of information on cybersecurityrelated policies and cyber attacks from peacetime; and joint training on cyberattacks, and will address challenges in cyberspace in the regional and international
arena, hand in hand.
Japan will also exchange its views towards cyberspace or information on
cybersecurity strategies, discuss the possibility of cooperation in the cybersecurity
field, and deepen mutual understanding and partnerships with other countries in
the Asia Pacific region. Japan will also actively participate in the regionalframeworks, such as APEC and the ASEAN Regional Forum (ARF), and take part in42

the development of economy, society, and culture by ensuring security and the freeflow of information in regional cyberspace.
(2) North America

Based on shared basic values, Japan will promote its cooperation with the North
America region in the cybersecurity field. In particular, the United States is Japan’s
ally that closely cooperates at every level, based on the Japan-U.S. Security
Arrangements. Japan and the United States also share common values related tocyberspace. Both countries closely cooperate and share information through theJapan-U.S. Cyber Dialogue, the Japan-U.S. Policy Cooperation Dialogue on theInternet Economy, the Japan-U.S. Cyber Defense Policy Working Group, and othervarious bilateral channels. Japan will continuously deepen its cooperation with theUnited States in a concrete manner, such as the sharing and utilization of information
on cybersecurity-related policies and cyber attacks; response to cybersecurity
incidents; and the implementation of joint projects in the area of state-of-the-art
technologies.
Japan will also closely cooperate with the United States in
responding to a wide range of cyberspace issues in the international arena, including
the development and implementation of international norms and rules,
international security, and Internet governance, will work together for peace andstability of the international community.

Furthermore, the defense authorities of both countries will promote cyber threatrelated information sharing, joint training against cyber attacks, and cooperation forhuman resources development; and strengthen operational cooperation between
the Self-Defense Forces and the United States Armed Forces under the new
Guidelines for Japan-U.S. Defense Cooperation.
By solidifying the whole-ofgovernment cooperation, Japan will enhance the U.S.-Japan Alliance’s deterrence
and response capabilities.
(3) Europe

European countries which share basic values and principles, e.g. market economy,
are Japan’s partners that take leading roles in building peace and stability of theinternational community.
As for the cyberspace issues, Japan will further
strengthen cooperation with each country and relevant organizations of Europe,
through various channels, including defense authorities; for instance, Japan will
promote the sharing and utilization of information on cybersecurity-related policies
and cyber attacks from peacetime, joint training against cyber attacks, joint projects
in the field of advanced technologies, as well as response to and cooperation on
cyberspace issues in the international arena.
43

(4) Latin America and the Caribbean, Middle East and Africa
Regarding the Latin America and the Caribbean region as well as the Middle East andAfrica region, Japan will build and strengthen its partnerships with countries thatshare common values with Japan, and consider the possibility of cooperation andpartnerships with other countries on capacity building and other measures.

44

5.4. Cross-Cutting Approaches to Cybersecurity
In order to achieve the three policy goals – improving socio-economic vitality andsustainable development; building a society where the people can live safe andsecure lives; and ensuring peace and stability of the international community andnational security –, it is imperative for the Government to make a tireless effort foradvancing prominent research and technological development and fostering
outstanding talent as the engine for the accomplishment of these goals. Such crosscutting approaches require a long period of time to produce tangible results andrequire a wide range of activities as well; the Government will take steps in mid andlong term perspectives, and will make progress in these activities by harnessing
relevant public-private business partnerships or arrangements and those of relevant
governmental bodies.

5.4.1 Advancement of R&D

ICTs have been interwoven with the people’s social activities and used more widelyin their economic activities, too, as the drivers of innovation. Along with thesignificant expansion of networked systems and devices, including those utilized by
CII and others, now more than ever, there is a growing need for cybersecurity
measures taken by the Government, private enterprises, and other relevant
stakeholders.
To combat evolving cyber attacks which have become moreadvanced, more sophisticated, and more complex on a daily basis, it is crucial topromote productive R&D to invent creative and innovative cybersecurity
technologies in comprehensive R&D areas, including networks, hardware, andsoftware. In line with the following R&D policies, the Government will promote
R&D in coordination with relevant stakeholders, by profiting from the combinationof diverse information, perspectives, and advantages held by each stakeholder.
(1) Improving Detection and Defense Capabilities against Cyber Attacks

For the protection of the Government, CII, enterprises, organizations, andindividuals from cyber threats, including more sophisticated and more complex
cyber attacks, in the interconnected and converged information society where the
IoT systems have prevailed, it is required to further advance detection and defense
capabilities based on a better understanding of actual situations. R&D for capacity
building in this regard requires the profound environmental improvement thatenables R&D to be implemented with a good grasp of actual threats and concreteneeds. Additional attention should be paid to the point that it is important to put
cybersecurity R&D into practical use with consideration of social needs and promote
45the active utilization of R&D accomplishments in society. To this end, theGovernment will promote information and data sharing necessary for governmental
bodies, researchers, and other relevant stakeholders in a user-friendly manner.
For example, to boost resilience against cyber attacks, data suitable for academic
evaluation, including the data transmitted in M2M systems, will be continuously
collected in actual environments, and subsequently used for the development of data
analysis technologies. Moreover, the Government will initiate necessary actions,
including the examination of relevant laws and statutes as well as standards
concerning research.
It is also the Government’s plan to improve defense
capabilities, for example, by incorporating cybersecurity into the planning phase of
the R&D projects promoted by the Government.
(2) Promoting Interdisciplinary Research on Cybersecurity

In combatting cyber threats, it is not sufficient enough anymore merely to consider
risks on information systems or conduct academic research, since the impacts ofcyberspace in the real world have increased due to the advanced integration of
cyberspace and physical space.
It requires the exploration of analysis
methodologies across multiple areas, including laws and statutes, policies, current
affairs, and technologies. From this standpoint, the Government will promote: thecollaboration with multidisciplinary research that encompasses various fields,
including social sciences perspectives, e.g. law, international relations, international
security, and business management; the promotion of research on cybersecurity ininterdisciplinary fields; and the examinations and R&D in a way to look ahead tofuture social and technological transformation, such as Big Data and Artificial
Intelligence (AI). Needless to say, the results of various R&D, including those in thefields of science and technologies, must not produce adverse effects in human society.
(3) Securing Cybersecurity Core Technologies

To predict and address cyber threats, including cyber attacks that are evolving every
day, it is vital for Japan to secure its core technologies required to make self-reliant
efforts for the invention and development of technological fundamentals of cyberattacks and cyber defense, the frameworks of systems, and so on. With regard tobasic research that fosters core technologies, although they may not be exactly
profitable in terms of business revenue, it should be noted that some of them, e.g.
cryptographic research, will become a potential source of new business
opportunities, if partnered with successful entrepreneurial ventures or prospective
stakeholders having business management and development capabilities, and that
there are mission-essential technologies from a national security viewpoint and forother reasons. For this, the Government will seek to make steady progress in46

building supportive environments for R&D at appropriate research institutes, suchas public research institutes, universities, and other relevant organizations.
(4) Enhancing R&D in International Coordination

As for technological measures to tackle cyber threats that have become moreadvanced and more sophisticated, in order to develop more progressive
technologies for internationally-coordinated measures that enable accurate
responses to such cyber threats, it is highly effective that “unique” technologies ofdifferent countries are organically integrated each other and developed in suchlinkage, since cyber attacks are launched beyond national borders.
The
Government will work hard on R&D in international coordination, paying carefulattention to research contents and national security concerns. As part of ongoingcollaborative efforts for various international standardizations, the Government will
also strive to: establish and disseminate the various international standards; andbuild the frameworks for mutual recognition related to cybersecurity technologies
and others.
(5) Partnering with Relevant Entities

R&D achievement cannot be made overnight; it is a task requiring long term
engagement. It is a common challenge not only for the field of cybersecurity but
also for other fields of research to build R&D supportive environment and nurture
researchers. The Government will promote active measures comprehensively inindustry-academia-public coordination, taking cybersecurity viewpoints andenvironmental changes into account, and in coordination with the Council for
Science, Technology and Innovation and other relevant organizations that are major
stakeholders of such measures. 11

5.4.2 Development and Assurance of Cybersecurity Workforce
Today, ICTs are widely ingrained in the people’s living as the social foundation. In
the emerging interconnected and converged information society, cybersecurity is an
essential literacy, to one degree or another, for a variety of human resources, fromcybersecurity experts and conventional ICTs experts to IoT users. Cybersecurity
workforce development is a pressing task for Japan, as there is a critical domestic
shortage of cybersecurity experts, both in quality and quantity. 12 As described in
For example, “Ensuring Cybersecurity in Critical Information Infrastructure, etc.” was selected as a
candidate of a new research project for the “Cross-Ministerial Strategic Innovation Promotion Program(SIP)” at the Council for Science, Technology and Innovation on June 18, 2015.

1112

According to the estimate of May 2013 made by the Information-Technology Promotion Agency, Japan47

the following sections, the Government will make efforts to: expand cybersecurity
education and education in cybersecurity-related fields; identify, foster, and recruit
talented individuals; and create career paths in a long term perspective forcybersecurity-related personnel. Overall, the Government will establish guidelines
to promote human resources development comprehensively and soundly.

It should be noted that it is necessary for such human resources to develop not only
technological capabilities but also high ethical standards.
(1) Promoting Human Resources Development Corresponding to Social
Needs in Higher Education and Vocational Training

Regarding highly skilled experts who will lead a future society, it is necessary to
implement the quantitative and qualitative human resources development thatmatches social needs, in more organic industry-academia-public coordination.
The Government will support higher education institutions, such as graduate
schools, universities, and colleges of technology to implement programs to offer
students learning opportunities to develop a solid foundation in both the basic
theory and practice of cybersecurity and to advance their practical cybersecurity
skills. In this regard, the Government will encourage these higher education
institutions to ensure that these programs will have a component to evaluate
students’ basic qualities, in terms of whether or not they would have sufficientknowledge, competencies, and other elements, as required.

Furthermore, for building industry-academia-public partnerships, the Government
will promote measures of practical exercises for human resources development,such as developing an environment for cyber exercises in a cloud environment andsupporting educational material development through industry-academia-public
partnerships, in addition to the improvement of close coordination and information
sharing among them.

In the current circumstances where cybersecurity has become a business-essential
challenge for organizational management, e.g. enterprise business management, therole of the intermediators capable of dualistic thinking, both from management
strategy and technological viewpoints, is highly important; it is because they canwork as moderators between the board level and security-related professional(IPA), there were approximately 265,000 experts working in the field of information security; among them,
however, only around 105,000 experts were considered to have required skills to perform their duties, andthe rest of 160,000 were required some kind of education or training to acquire the lacked skills. On theother hand, according to the same estimate, there was a potential shortage of further 80,000 information
security experts approximately in Japan.
48

personnel, and as a result, can work to promote the appropriate allocation ofbusiness resources to security. In this sense, the Government will support higher
education institutions to develop “hybrid” human resources or individuals multitalented with comprehensive knowledge and skills in various fields, fromcybersecurity and ICTs, social sciences such as law and business management, toorganizational management and others.

For the provision of secured products and services, cybersecurity-related
knowledge is indispensable in engaging in the manufacture of products and services.
Taking into consideration that cybersecurity is an essential literacy for multiple
people, from experts in all of the ICTs-related fields to ICTs users, the Government
will examine possible measures, including recurrent education at higher education
institutions, the expansion of opportunities for practical exercises in industryacademia-public coordination, and the promotion of the active use of vocational
training.
(2) Expanding Elementary and Secondary Education for Cybersecurity

In the interconnected and converged information society, it is the essential
foundation for enriching and developing the people’s socio-economic activities andliving that the IoT systems and other ICTs are fully available for use by all actors,
including individuals, enterprises, and governmental entities. In this society,cybersecurity is a literacy, to one degree or another, required for everyone.
Cybersecurity literacy includes logical thinking capability and understandings of
ICTs as well as the basic mechanisms of equipment. It is vital to cultivate such
literacy based on school children’s developmental stages starting from theelementary and secondary education levels. Moreover, learning cybersecurity at
the pre-tertiary education level is critical for the development of cybersecurity
experts at the higher education stage; pre-tertiary learning is equally required forconventional ICTs experts and ICTs users to become cybersecurity literate.

The Government will further promote elementary and secondary education for:nurturing practical skills, scientific understanding of information, and participatory
attitudes towards the data-driven society; facilitating understanding of information
morality, including information security, and other associated understandings; andfostering logical thinking capability and understandings of ICTs as well as the basic
mechanisms of equipment, and more. It is also the Government’s plan to improveand expand training and other activities for teachers to improve their ICTs-basedteaching capabilities.
49

(3) Discovering, Fostering, and Acquiring the Best Brains as Global Players
With regard to cybersecurity-related human resources, the Government willcontinue to make efforts to discover the best brains, in addition to promote
cybersecurity education offered by educational institutions, such as graduate
schools engaging in cybersecurity-specific advanced research cooperation. It isalso aimed to promote the development of self-help cybersecurity capabilities to
examine appropriate incident responses, through research on various methods ofcounteractions against cyber attacks, including defensive and offensive methods.

Moreover, given the fact that cybersecurity has become a global challenge, such thebest brains are expected to become globally competent; in other words, it needs tonurture individuals who are capable of working across national borders. For thisreason, the Government will actively launch various initiatives, such as more
supports for organizing contest events by inviting overseas participants, andbuilding networks among exceptionally talented individuals. With such initiatives,
the best national brains will become more motivated by knowing their levels ofcybersecurity skills compared with the global standards, while staying in Japan.
(4) Building Long Term Career Paths for Cybersecurity Experts

A majority of organizations are using ICTs as a tool to achieve their businessobjectives. This means that organizations using ICTs are required to address
cybersecurity as their business management issue. At these organizations, allbusiness levels, from the operational level to the board level, need to be equipped byhuman capacity with cybersecurity expertise to ensure cybersecurity readiness,based on the different needs at each business level. As for cybersecurity-related
businesses, their human resources challenge is to employ not only cybersecurityspecific personnel but also those who perform supervisory duties for them.
Moreover, to build specific career paths corresponding with the organizational
needs will be beneficial for enterprise senior executives, educated cybersecurity
personnel, and human resources developers.

In this regard, the Government will aim at creating a virtuous circle of supply anddemand of human resources through appropriate measures: the visualization ofcompetency, by developing qualification schemes to evaluate cybersecurity-related
personnel’s practical skills timely and appropriately and by establishing thestandards of basic skills required to perform assigned functions at organizations; thepromotion of activities for better matching of occupational supply and demand,
including the expansion of internship opportunities, with consideration of thenature of businesses concerned and host organizations’ needs; the development ofcareer paths for cybersecurity human resources across industries, academia, and the50public sector; the promotion of other relevant measures in various perspectives,
including business finance, and so on.

(5) Strategizing Human Resources Development for Enhanced
Organizational Capacities

There are rapidly increasing and aggravating cyber attacks that target a wholeorganization and/or a sector, including the governmental bodies and CII operators.
To tackle cyber attacks in an accurate and timely manner, it is not enough to makethe efforts of individuals to enhance their cyber defense capabilities; what is
important is aligning these individual efforts in an organic fashion for building
enhanced organizational capacity. For the overall organizational improvement ofcybersecurity capabilities in an effective and efficient way, it is crucial to create anenvironment where different organizations could learn from each other throughfriendly competition, while helping individual organizations grasp their current
levels of practical skills as well as challenges specifically.

For this reason, the Government will work to systematize organizational capabilities
necessary to counter cyber attacks, and make practical exercise activities morecomprehensive to improve such organizational capabilities. The enhancement of
the public-private collaboration frameworks will be also undertaken by theGovernment for the purposes of collective damage control and recurrence
prevention or reduction in the event of serious cyber attacks or other cybersecurity
incidents.

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6.

Promotion and Implementation of Cybersecurity

The Cybersecurity Strategic Headquarters functions as the command and control
body to promote this strategy; and, as its secretariat, the NISC takes a leading role topromote cybersecurity policies set forth in this strategy. To this end, the NISC
fulfills its functions to implement required measures and to enhance governmental
cybersecurity capabilities.
These include: the network-based vigilance andmonitoring of malicious activities against information systems of administrative
organs; fact-finding on the cause of incidents and audit of relevant governmental
bodies; information gathering and analysis on domestic and foreign cybersecurity;
the promotion of international cooperation and collaboration; and cybersecurity
workforce development for and by the governmental bodies. To fully perform its
responsibilities, the NISC will take necessary measures, including the further
enhancement of its own response capabilities through the appointment of highly
advanced cybersecurity experts from the private and other sectors, and so on; andthe establishment of frameworks for timely information sharing with relevant
governmental bodies (including those of senior executives), to enable the NISC toobtain necessary information quickly and to take appropriate whole-of-government
actions in the case of a cybersecurity incident.

In close coordination and collaboration with the NISC, each governmental body has
the responsibility to perform its missions and implement necessary cybersecurity
measures, which will include the appropriate sharing of information with andproviding essential advice for organizations and business operators under its
jurisdictions.
Especially, to strengthen national cybersecurity capabilities as awhole, coordination and collaboration will be enhanced among parties concerned,
including active information sharing among industries, academia, and the public
sector, in addition to relevant governmental bodies. Particularly, to enable sensible
response in the event of a cybersecurity incident, it is essential to enhance thegovernmental posture for incident readiness on a routine basis, to detect, analyze,
and respond to cyber attacks and the like. In this sense, the Government will
strengthen its entire information gathering and analysis functions, including countercyber intelligence functions as well as closer coordination and collaboration withprivate entities, to expand daily information gathering activities and to better
foresee and detect threats in cyberspace promptly. In addition, the Government
will build and maintain a high-end posture with sophisticated functions of thegathering, analyzing, and sharing of information, which enables immediate actions
as an integrated cycle of prompt detection, analysis, decision-making, and response
regarding cyber attacks.
52With regard to its crisis response and management function, the Government willtake further enhancement measures, including a recommendation to be made by the
Chief of the Cybersecurity Strategic Headquarters, while reviewing the modality andappropriateness of the initial response posture and measures to be taken to a cyberattack or a similar incident. At the same time, the Government will build an interorganizational cooperation framework that enables the governmental bodies,incorporated administrative agencies, cybersecurity business operators, and otherrelevant stakeholders to respond jointly to cyber incidents, such as a massive cyberattack.
The Government will also make proactive efforts to promote close
coordination and cooperation among these relevant parties, from industries andacademia to the public sector, that have specific expertise in the areas of incident
responses to massive cyber attacks, practical training and exercises for humanresources development, and others. These efforts include measures to: utilize theknowledge and experiences of relevant entities, such as Information-Technology
Promotion Agency, Japan (IPA) for monitoring of and fact-finding on malicious
activities in cyberspace and audit of governmental bodies being conducted by theGovernment; and utilize the technical knowledge and skills of relevant entities, suchas the National Institute of Information and Communications Technology (NICT),
regarding infrastructure for simulation exercises as well as monitoring and analysis
for strengthening cybersecurity-related response capabilities. To realize thesepolicies, the Government will take necessary measures, including legislative ones.

In recent years, there is an increase in highly advanced and well-planned cyberattacks that might be state-sponsored. Countering such cyber attacks is one of themost critical challenges to Japan’s crisis management and national security. The
Cybersecurity Strategic Headquarters will collaborate and share information withthe crisis management organs, including a headquarters for emergency response to
terrorism, when established, and take appropriate actions concerning national
security, in close coordination with the National Security Council.
Moreover, it is an upmost necessity for Japan to work towards ensuring
cybersecurity for the major international events, including the Tokyo 2020. While
making a clear recognition of cybersecurity risks and challenges relating to theTokyo 2020, the Government will accelerate the formulation process of the CSIRT
for the Tokyo 2020 as a core organ responsible for making appropriate prediction
and detection and for information sharing among stakeholders vital to takeappropriate measures against cyber attacks on relevant entities involving themanagement and operation of the Tokyo 2020 and other associated businesses aswell as those on the services provided by relevant CII. The Government will takesteady actions with a phased approach to: build and maintain necessaryorganizations, facilities, and cooperative relationships; ensure a pool of53cybersecurity experts; and conduct comprehensive preparatory training following
the process taken for and during the 42nd G7 Summit in the Ise-Shima region in2016 as well as the Rugby World Cup to be held in Japan in 2019. Incident
response capabilities to be developed through these occasions will be utilized later
for the sustainable enhancement of Japan’s cybersecurity.

Given the great importance of these cybersecurity policies to crisis management andnational security, necessary resources, including additional funding, for the further
enhancement measures need to be ensured by seeking for the most appropriate
reallocation and implementation of budget as a whole-of-government approach,while efforts will be made for maximizing administrative efficiency and cost saving,and so on, through the review of administrative works and policy measures and bysystems reforms. The Government will also take immediate actions to maximum
extent feasible, including the appointment of highly talented individuals as in-housecybersecurity experts at the governmental bodies, by assuring employment
conditions that would suit the professional values of their expertise. Where
additional procedures and regulations are required, the Government will takeactions as appropriate and without delay.

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7. Plan Process and Review
Based on the current state of the nation as well as the future scenarios for Japan’ssociety in the early 2020s, this strategy extracts critical issues that Japan has faced,and outlines the basic strategic directions over the coming three years, for the
resolution of these issues. For the steady implementation of the strategy, incompliance with the Basic Act on Cybersecurity, the Cybersecurity Strategic
Headquarters will establish an annual plan for each fiscal year during the triennium,
and will produce an annual report for the corresponding year, by reviewing thestatus of progress in policy implementation.

At the same time, the Cybersecurity Strategic Headquarters will establish a budget
prioritization policy for the governmental bodies to implement cybersecurity
measures effectively in line with the directions the strategy indicates. Bearing in
mind that the situations and technical premises in cyberspace are frequently
evolving in an incoherent fashion, the Government will undertake a functional
review flexibly, where necessary, regardless of the timeframe the three year plan
covers.

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