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Episode: 2950
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Title: HPR2950: NotPetya and Maersk: An Object Lesson
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Source: https://hub.hackerpublicradio.org/ccdn.php?filename=/eps/hpr2950/hpr2950.mp3
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Transcribed: 2025-10-24 13:47:10
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---
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This in HP are episode 2950 entitled Not Petty and Merck, an object lesson and in part
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of the series Privacy and Security, it is hosted by a huker and in about 14 minutes long
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and carry a clean flag.
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The summary is, looking at an object lesson for proper IT management processes and the cost
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of failure.
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This episode of HBR is brought to you by an honest host.com.
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At 15% discount on all shared hosting with the offer code HBR15, that's HBR15.
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Hello, this is a huker, welcoming you to Hacker Public Radio and another exciting episode
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again in our security and privacy series that is ongoing and I want to talk about kind
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of an object lesson of how not to do things and how not taking care of your security can
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get you into a lot of trouble.
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And this has to do with Not Petty, which you may have heard of.
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Now Not Petty is pretty clearly Russian in origin and I think that that matters to some
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degree, although that's not really the primary focus of this particular episode.
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But just as a bit of background, my first degree was in history and my focus was on history
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of Russia and Eastern Europe, although I think these days we refer to a lot of that now
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as Central Europe, but that's either way.
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It was an interesting thing to do because when I was doing it, very, it was not something
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that that many people were studying and I remember some of the professors at the university
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I went to.
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So why are you doing that?
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Nothing interesting ever happens there.
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Well, that was in the 70s.
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So a lot of things have changed.
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But one of the things I learned is that there is something that actually predates even the
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Bolshevik Revolution and the Soviet Union and that is this kind of love-hate relationship
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between Russia and the West.
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So I think you can read, like, say, Turgainov and Dostoevsky as almost carrying on a conversation
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about should we approach and emulate the West or should we resist the West and make it
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our enemy with Turgainov being a westernizer and Dostoevsky being a Russophile.
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And I mentioned that just to say that the enmity that came out from the Soviet Union originally
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and to my mind still continues now has been there for a long time and I think we should
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probably just recognize that we are in a state of war to some degree, undeclared, but
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we are in a state of war with Russia.
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But right now, the weapons are code instead of missiles and bullets because Russia really
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can't compete on the grounds of missiles and bullets.
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It's actually not that wealthy or advanced a country in a lot of ways, but it can write
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code.
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Now, a good example of this is the not-petch-a-malware, which hit various networks in June of 2017.
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It initially looked like a variant of the Petya ransomware, but it quickly developed that
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that was purely a masquerade.
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It was never intended to collect ransoms.
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In fact, you could not get your data back even if you paid a ransom because it was all
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about destruction.
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It was designed to be malicious.
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Now, the initial target was in Ukraine, which is in a somewhat hotter state of war with
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Russia, but because of the way software networks connect with each other, it quickly spread
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to a number of networks in Western Europe and in the United States.
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Now, this is not really an episode about the malware itself.
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It's actually about the Danish shipping company, Mersk.
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Now, Mersk is a critical part of the infrastructure of the Western economy.
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It handles containerized shipping around the world, delivering parts and raw materials
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to manufacturers and finished goods to markets.
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You may have sometimes seen the giant container ships that are absolutely massive that travel
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around the globe.
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In us, that's Mersk's business.
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In today's manufacturing environment, we have this thing called just-in-time manufacturing
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that relies on parts and raw materials being delivered each day, maybe several times
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a day, just where they're needed.
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Companies no longer maintain any significant level of inventories for these things.
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These regular daily or multi-day times a day shipments are required to keep the machines
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and operation and the workers employed.
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This is something I think is going to come very apparent, unfortunately, to people in
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Britain because they're busy destroying all of the networks that keep manufacturing going.
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So, Mersk is a vital part of this, not the only one, but they're a big one.
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And to manage this, companies like Mersk rely on large computer networks to keep everything
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moving smoothly.
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So it stands to reason.
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They would treat their network like the Crown Jewels, right?
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Well, not so much.
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In fact, there were significant problems that had gone unaddressed that were about to bite
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Mersk in the butt.
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This makes it a good object lesson in light of our previous article on the NIST Cybersecurity
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Framework.
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That may have seemed a bit dry.
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So let's look at this case study to put some flesh on those dry bones.
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Mersk suffered days of downtime that affected their operations in 76 ports all over the
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world and 800 of those giant container ships that they operated.
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Now the losses they officially acknowledged came to 300 million.
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That is probably a deliberately low estimate.
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And it doesn't count the losses inflicted on other participants, such as the ports,
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the trucking companies, the customers, and so on.
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Mersk was not the one to suffer the largest losses.
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Pharmaceutical company Merck came in with an estimate of 870 million.
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And the White House estimated the total for losses at 10 billion.
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So we're here to look at what Mersk did to get in so much trouble.
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First it is worth noting that the IT department had been pushing for security improvements,
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but implementing them was not a priority for Mersk management.
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As the saying goes, you don't miss your water till the well runs dry.
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So what was the IT department pointing out?
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The first one, Mersk was still running some very old servers.
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Some of which were running the Windows 2000 operating system.
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But by 2017 that old operating system was no longer supported and Microsoft was not issuing
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any security updates.
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Of course part of the problem was no doubt that a newer operating system would also require
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newer hardware, that's usually how it works.
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But it should be a matter of course to plan on updates to both hardware and software
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on a regular schedule to keep up to date.
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A good IT organization will plan to regularly test patches and new operating systems as they
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are released.
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This should include regression testing and testing all currently installed hardware and software.
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If an incompatibility is surfaced the appropriate response is not to maintain the old hardware
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or software if that is going to be creating a risk.
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But to plan on finding replacements or getting the vendor to update and support the new
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environment.
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This costs money of course, but probably a lot less than this malware cost, Mersk.
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Another problem, network segmentation was lacking.
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In a large network you do not want any intruder to have full run of the whole network.
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This by the way is also what happened to Sony when the North Koreans got into its network.
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The way you do this properly is to segment your network so that systems that truly need
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to interact are on a network segment that does not easily communicate with other segments.
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At the very least you need to have password protection with separate passwords for each
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segment, even better would be to incorporate multi-factor authentication.
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Both were missing at Mersk and the Sony one, how did that happen?
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They had everything tied together in one big network and all it took was for a secretary
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to succumb to a fishing attack and let some malware into the system and the North Koreans
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had the run of everything.
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So segment your network, this is not rocket science, just basic security.
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Another problem, backups, there was problems with what Mersk was doing with backups.
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Now a good rule, not perfect, we can argue the details, but a good rule is the 321 rule.
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You want three different copies of the backup in at least two different media and at least
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one off site.
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And of course the off site one needs to be off the network completely.
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The reason is that any malware that gets on your network will attack any system connected
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to the network.
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For example, ransomware will look for any attached backup system and encrypt all of that data
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as well.
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In the case of Mersk, they had made all of their domain controllers connect to each other
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so that they would always be in sync, which is good as long as you keep in mind the other
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copies which they did not have.
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Now Mersk got lucky here, since one server out of the approximately 150 domain servers
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on the network located in Ghana somehow escaped destruction.
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They were able to fly the hard drive back to their IT headquarters to rebuild the network.
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And how did the Ghana server survive?
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Dumb luck.
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A power failure in Ghana had knocked it off line and it was disconnected from the rest of
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the network while not Petchy was busy destroying everything.
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You don't want to rely on getting lucky.
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That's a rule, I would say, insecurity management.
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But the biggest problem was the lack of urgency.
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Everything we've talked about here was unknown to the IT department.
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They were very aware of the potential problems and they were concerned and they had communicated
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their concerns to management.
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They had also obtained general agreement that, yeah, these problems should be addressed,
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but addressing these problems was never part of what is termed a key performance indicator
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for anyone in management, including IT management.
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In the final analysis, if this is not going to determine my bonus, if this is not going
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to determine my raise, if this is not going to determine whether or not I can keep my
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job, it's not that important.
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So you need to build those things in.
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This is an ongoing problem in many organizations because IT is often seen only as a cost and
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not as a competitive advantage, and yet for mayors, literally their entire business relied
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on excellent IT implementation.
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So this is something that really has to be addressed.
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Now I remember some years ago, a television advertisement in the United States for, I
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think it was an auto maintenance service, and the punchline is, you can pay me now or you
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can pay me later.
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Well, mayors suddenly did make those IT improvements at top priority, but only after a large loss
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and disruption to their business relationships.
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This is a hard way to learn the lesson.
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Maybe the biggest lesson is that executives have to be held responsible for this stuff.
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Now as the NIST framework says, and I'm quoting, there is a formal organization wide approach
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to managing cybersecurity risk, and see your management monitors this just as they monitor
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financial risks and other organizational risks.
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That's the desired approach that NIST is laying out.
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And so if you were listening to the show we did on that NIST framework and thought, oh,
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this is very abstract, there is reality there.
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You have to pay attention to it to understand they're talking about real things happening
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in real organizations.
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So with that, this is Ahuka signing off for Hacker Public Radio, and as always reminding
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you to support FreeSoftware.
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Bye-bye.
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You've been listening to Hacker Public Radio at Hacker Public Radio.org.
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We are a community podcast network that releases shows every weekday Monday through Friday.
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Today's show, like all our shows, was contributed by an HBR listener like yourself.
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If you ever thought of recording a podcast and click on our contributing to find out how
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easy it really is.
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Hacker Public Radio was founded by the Digital Dove Pound and the Infonomicom Computer Club,
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and is part of the binary revolution at binwreff.com.
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If you have comments on today's show, please email the host directly, leave a comment on
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the website or record a follow-up episode yourself, unless otherwise stated, today's show is released
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under Creative Commons, Attribution, ShareLite, 3.0 license.
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