WEBVTT - Palma Discusses Security in a New World of Work

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<v Speaker 1>You're listening to Bloomberg Business Week with Carol Messer and

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<v Speaker 1>Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. A lot

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<v Speaker 1>going on, as we mentioned today, of course, those headlines

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<v Speaker 1>from J Powell at the NAVE conference in Washington, certainly

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<v Speaker 1>Royal uh the financial market. J Pali saying he's ready

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<v Speaker 1>to back half a point hike in May if it's necessary.

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<v Speaker 1>So we did see a sell off in equities, we

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<v Speaker 1>saw bonds go up. We kind of we did initially absolutely, yeah,

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<v Speaker 1>that NASAC wonder. I believe we felt more than one

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<v Speaker 1>point four percent, Carroll underperforming every major index, including the

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<v Speaker 1>Russell two thousand. So what changed, Well, I think it's

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<v Speaker 1>just a little bit more of an aggressive tone, right

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<v Speaker 1>changed toward the end of the day when when equity

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<v Speaker 1>investors bought back in, because I still I still sense

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<v Speaker 1>this disconnect between the equity market and the bottom. I

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<v Speaker 1>think there's a lot of disconnect everywhere because I think,

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<v Speaker 1>you know, we talked about growth and so on and

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<v Speaker 1>so forth, so this is just the environment we're in.

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<v Speaker 1>And speaking of the vironment that we're in, you know,

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<v Speaker 1>we're trying to figure out how we come back post pandemic.

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<v Speaker 1>We're also, of course, you know, watching what's going on

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<v Speaker 1>of course with this war in Ukraine, the Russian invasion,

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<v Speaker 1>and there are increased concerns about cyber warfare. Yeah. Just

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<v Speaker 1>this afternoon, President Biden warned that Russia is weighing a

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<v Speaker 1>cyber attack against the U S as its military struggles

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<v Speaker 1>in Ukraine, and urged private businesses to enhance their defenses.

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<v Speaker 1>Joining US now, as Brian Palmer, CEO at Trelix, it's

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<v Speaker 1>a privately held cybersecurity company. It monitors at researches threats uh,

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<v Speaker 1>and it produces threat intelligence on threat actors and their behavior.

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<v Speaker 1>Brian joins us a via zoom from Washington, d C. Brian,

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<v Speaker 1>how are you, um well, Hey, Tim? How are you hey, Carol?

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<v Speaker 1>Thanks for having We're doing well. Hey. I wonder how

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<v Speaker 1>you read into a statement like this coming from the

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<v Speaker 1>President of the United States. He said that Russia could

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<v Speaker 1>quote conduct malicious cyber activity against the US, including as

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<v Speaker 1>a response to the unprecedented economic costs we've imposed. Yeah,

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<v Speaker 1>so obviously we know it's an effective form of war.

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<v Speaker 1>Fair in today's world, right, cybersecurity can can get the

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<v Speaker 1>job done. I think in general, what we've been seeing

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<v Speaker 1>over the last few weeks is limited novel attacks. We

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<v Speaker 1>haven't seen a lot of new things happening, uh, and

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<v Speaker 1>that's caused some folks to pause. Right, because it's not

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<v Speaker 1>as much as expected, doesn't mean it won't happen. I

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<v Speaker 1>think obviously the President's right, there is a high possibility

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<v Speaker 1>that there could be attacks coming out of that region

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<v Speaker 1>and they could be directed towards US companies, but so

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<v Speaker 1>far we have not seen that, but all of our

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<v Speaker 1>customers are obviously on guard. Yeah, it's just a reminder, right, um,

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<v Speaker 1>Brian that we are living in an environment where this

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<v Speaker 1>is a really potentially effective weapon and could really we

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<v Speaker 1>see you know, some of the stuff that's been going

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<v Speaker 1>on in Ukraine, but it's certainly something that we need

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<v Speaker 1>to consider whenever we're in any kind of a battle

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<v Speaker 1>economic or militarily. That's right. And it isn't a weapon

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<v Speaker 1>that we know will be utilized and it could have

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<v Speaker 1>big consequences, so it's something that you know, we're staying

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<v Speaker 1>close to it. Like you said, we've seen some pseudo

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<v Speaker 1>ransomware out there that's been putting some wiping and some

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<v Speaker 1>other things within the Ukraine, but nothing like anyone expected.

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<v Speaker 1>But everyone's on guard. So what does on guard mean? Well,

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<v Speaker 1>I think everybody's looking. So all of the cybersecurity companies

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<v Speaker 1>that are out there, we have our trailicks, threat labs

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<v Speaker 1>were monitoring obviously on the government side, we have lots

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<v Speaker 1>of people cyber warriors that are out there engaging, seeing

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<v Speaker 1>looking at the intelligence we're seeing if there are new

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<v Speaker 1>types of attacks, tim uh, And today we're just seeing

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<v Speaker 1>really pretty much a normal course of business, but that

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<v Speaker 1>could change on a moment's notice. So Brian, you're not

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<v Speaker 1>seeing anything out of the ordinary over the last three

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<v Speaker 1>or four weeks, or perhaps nothing more coming from Eastern

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<v Speaker 1>Europe with than usual. Now we're seeing, you know, basically

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<v Speaker 1>the same stuff we would normally see. Like I mentioned,

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<v Speaker 1>we saw a little bit of pseudo ransomware or something

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<v Speaker 1>called hermetic wiper that does some wiping and destruction, but

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<v Speaker 1>but nothing UM that we would see as as off

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<v Speaker 1>the norm Do you think it's because and in this

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<v Speaker 1>story that we have I think this came from James

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<v Speaker 1>Lewis to Retro Strategic Technologies Program at the Center for

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<v Speaker 1>Strategic and International Studies UM, saying that the Russians have

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<v Speaker 1>explored US critical infrastructure before in very extensive ways. This

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<v Speaker 1>is a wake up call to people. I mean, if

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<v Speaker 1>something is going to happen, I mean, this is your world,

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<v Speaker 1>and you obviously dealing it with a business perspective and

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<v Speaker 1>a corporate perspective. But the conversations, is it more likely

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<v Speaker 1>to be some of that critical infrastructure, be it physical infrastructure, utilities,

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<v Speaker 1>or our financial system. It potentially could. I mean, they're

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<v Speaker 1>going to go for high value targets. We know, we

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<v Speaker 1>know that we've seen that in different industries, so I

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<v Speaker 1>wouldn't speculate which one. I also would speculate why they

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<v Speaker 1>haven't done it so far. I think there are a

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<v Speaker 1>lot of people speculating on that. That's not my job.

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<v Speaker 1>I'm not on the policy side, but we're definitely ready

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<v Speaker 1>and watching and ready to help our customers. Hey, Brian,

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<v Speaker 1>you Um and Tim and myself and a lot of

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<v Speaker 1>other UH senior executives. About a week or so ago,

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<v Speaker 1>we're part of Bloomberg Live event working Shifting two point over,

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<v Speaker 1>Reinventing normal, and we talked about what work like post pandemic.

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<v Speaker 1>I mean, we're still exploring this and trying to understand it.

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<v Speaker 1>What are you seeing, what are your expectations, and I'm

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<v Speaker 1>curious how it compares to personally what you guys were

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<v Speaker 1>doing pre pandemic and what you're seeing from some of

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<v Speaker 1>your customers and clients. Yeah, Carol, great question. I think

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<v Speaker 1>we were seeing. Look in cybersecurity, it's been an extremely

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<v Speaker 1>competitive environment for a long time, so we have about

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<v Speaker 1>a million person shortage across the cybersecurity market. We were

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<v Speaker 1>also seeing a lot of this happening pre COVID. I

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<v Speaker 1>think what happened is a lot of folks got forced

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<v Speaker 1>into remote work and that accelerated the curve on having

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<v Speaker 1>to build capabilities and make better cyber investments. As I

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<v Speaker 1>mentioned last week, COVID, of course was not a good thing,

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<v Speaker 1>but in the world of cybersecurity, it actually accelerated our

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<v Speaker 1>capabilities to protect and defend companies in this time of

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<v Speaker 1>more remote work. So in a way, it did drive

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<v Speaker 1>investment and capability building. What does it mean for you

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<v Speaker 1>attracting and retaining talent here in this environment. Yeah, I

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<v Speaker 1>mean it's definitely tough. One of the things I like

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<v Speaker 1>to talk about is soulful or soulless work. One of

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<v Speaker 1>the things we're seeing is that people are really thinking

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<v Speaker 1>about what do they do, how do they spend their time?

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<v Speaker 1>And for us being in cybersecurity, I call it soulful work.

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<v Speaker 1>I think as an industry we have a real advantage there,

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<v Speaker 1>especially as many technologists are looking and asking what do

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<v Speaker 1>they do, who do they work for, what's the impact

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<v Speaker 1>they're having in the world. We're trying to use our

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<v Speaker 1>soulfu work to our advantage to attract people to come

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<v Speaker 1>join us in the cybersecurity world. You're paying workers more, well, yeah,

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<v Speaker 1>of course, right, that's a piece of the puzzle. But

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<v Speaker 1>that that alone doesn't do it, Carol Um. With the

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<v Speaker 1>great resignation, we're seeing a lot of competitiveness. You obviously

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<v Speaker 1>have to pay people, but what you also have to

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<v Speaker 1>do is have a mission and a culture and career

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<v Speaker 1>advancement that is attractive to them as well. You've got

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<v Speaker 1>to have the full package. Pay alone won't do it.

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<v Speaker 1>We just talked with our New York Bureau chief, Shelley

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<v Speaker 1>Banjo about what's going on in New York City, and

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<v Speaker 1>you know whether or not everybody is going to ultimate

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<v Speaker 1>come back to the offices here in New York or

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<v Speaker 1>whether they continue to do hybrid work. Um, what are

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<v Speaker 1>you expecting. Are you willing to hire anybody from anywhere

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<v Speaker 1>in the world and that's fine with you? And that

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<v Speaker 1>means people can live wherever they want and just get

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<v Speaker 1>about thirty seconds. Yeah, of course. Yeah. So in our industry,

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<v Speaker 1>like I said, we've been in a war for talent

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<v Speaker 1>for a number of years. We have to get the

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<v Speaker 1>best and most talented. People will go anywhere and hire

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<v Speaker 1>folks anywhere. That means we make certain accommodations within the business.

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<v Speaker 1>Obviously that's not the case for all businesses. Some businesses

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<v Speaker 1>we're going to have a higher propensity of folks coming

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<v Speaker 1>back to the office. I think we're starting to see that, Brian,

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<v Speaker 1>ten seconds. Do you think that means urban areas are

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<v Speaker 1>at risk potentially just quickly? I do. I think a

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<v Speaker 1>lot of folks who work in the technology area are

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<v Speaker 1>moving out and they're moving to places they want to be,

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<v Speaker 1>whether they love to fish or ski or do different things.

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<v Speaker 1>I do think we're seeing an exodus from some of

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<v Speaker 1>the urban areas. Great to check in with you, Brian Palmer,

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<v Speaker 1>us CEO at Trellis via zoom from Washington, d C.