Cyber threats targeting critical infrastructure like the energy grid are on the rise. According to the Business Today threat intelligence index report, attacks on energy companies increased by 50% compared to the previous year.
This emphasizes the growing importance of compliance with cybersecurity standards. NERC CIP standards play a vital role in securing critical electricity assets in the US. This blog post examines the impact of NERC CIP compliance on enhancing cybersecurity.
Evolution of NERC CIP Standards
The North American Electric Reliability Corporation (NERC) develops Critical Infrastructure Protection (CIP) – NERC CIP compliance is a cybersecurity reliability standard for the bulk electric system (BES) in North America. These standards have evolved significantly over the past 15+ years:
- CIP Version 1 (2006) – Initial CIP standards focused on critical cyber asset identification, security management controls, personnel and training, electronic security, physical security, and systems security management.
- CIP Version 2 (2008) – Incremental updates enhancing previous CIP requirements, emphasizing auditability and accountability.
- CIP Version 3 (2009) – Major revision addressing the scope of assets that fall under CIP through revised BES impact classifications. Standards categorized as CIP-002 to CIP-009.
- CIP Version 4 (2013) – Increased cyber asset protections like encryption, logging, and password complexity focused on high-impact BES Cyber Systems.
- CIP Version 5 (2016) – Introduced enhanced security controls and risk-based assessment approaches informed by the latest cyber threats.
- CIP Version 6 (2020) – New standards expanding reliability protections for low-impact assets and emphasizing supply chain cybersecurity.
The evolution of NERC CIP versions demonstrates how standards continuously adapt to address emerging cybersecurity priorities in the ever-evolving digital landscape.
Mitigating Cybersecurity Risks in the Energy Sector
Recognizing growing cyber threats, NERC developed eight new or revised CIP Reliability Standards in 2017 focused on mitigating vulnerabilities in high and medium-impact Bulk Electric System (BES) cyber systems. These targeted the following cybersecurity areas:
- Electronic Access Controls – CIP-003-7 strengthens protections regulating user access, and preventing unauthorized activity.
- Awareness and Training – CIP-004-6 mandates improved security training and personnel risk assessments.
- BES Cyber System Categorization – CIP-002-5 enhances methods for identifying and categorizing BES cyber system impacts.
- Incident Reporting – CIP-008-6 requires rapid security event notification and response readiness.
- Configuration Change Management – CIP-010-3 demands cyber asset change oversight for security.
- Information System Planning – CIP-013-1 introduces cyber asset supply chain protections.
- Recovery Plans – CIP-009-6 makes system recovery planning mandatory for reliability.
These standards mitigate risks ranging from unauthorized access to poor vendor security practices that threaten grid cyber assets. Their implementation demonstrably reduces vulnerabilities to cyberattacks.
CIP’s Role in the Broader Context of US Cybersecurity Regulations
The NERC CIP Reliability Standards are one set of mandatory electric industry regulations in North America. Specifically:
- NERC has 14 mandatory BES reliability standards to maintain grid asset security and reliability.
- 11 of these 14 mandatory reliability standards currently fall under CIP, focused squarely on cybersecurity.
- CIP is not subsumed under any other regulations, making it the primary body governing electricity infrastructure cyber protections.
Other cybersecurity regulations in the US critical infrastructure landscape include:
- HIPAA – Health Insurance Portability & Accountability Act
- SOX – Sarbanes Oxley Act
- GLBA – Gramm Leach Bliley Act
These handle healthcare, financial audit, and financial services sector security respectively.
Data Source: State of Reliability Report
As the data above shows, even though cyber threats grow exponentially, CIP continues to be the central force driving cybersecurity capability improvements uniquely across electricity infrastructure through regular revisions.
Synergy Between NERC CIP and Other Cyber Frameworks
NERC updated its crosswalk document mapping CIP standards to the industry-recognized NIST Cybersecurity Framework.
This alignment allows entities to leverage their CIP compliance work in adopting the NIST framework’s risk-based approach. It also enables consistency with international standards like ISO 27001.
Implementing CIP-013 Compliance: Challenges and Strategies
- Knowing which new security controls and software are needed. Hiring consultants who understand the systems and supply chain to advise on CIP-013 requirements.
- Working with vendors who know how to secure their products. Talking frequently with vendors about security needs and adjusting the technologies.
- Getting all company departments to work together on compliance. Creating a team with members from IT, operations, finance, legal, etc. This helps spot what’s slowing things down.
- Managing all the complex parts. Getting help from good partners and having all internal groups cooperate.
CIP-013 requires security controls for cyber asset supply chains. But resource limitations pose adoption obstacles:
| Challenge | Strategy |
| Acquiring products that meet enhanced security requirements | Work with vendors early when drafting RFPs |
| Absorbing increased costs of more secure products | Balance security with reasonable budgets |
Securing buy-in from the C-suite for shared cybersecurity responsibilities across departments is also key to successful implementation.
The Road Ahead
While existing standards enable security improvements, new threats necessitate additional protections:
- Expanded supply chain requirements addressing 5G and IoT device risks
- Cloud security testing measures are tailored to virtualized computing environments.
- Security training mandating the latest threat detection and response tactics
Vigilant enhancement of cybersecurity standards like NERC CIP is essential to counter rapidly evolving attacks targeting critical electricity infrastructure.
Frequently Asked Questions
Q: What are the specific benefits of NERC CIP compliance for energy sector cybersecurity?
A: Beyond avoiding penalties, CIP standards compliance directly improves security protocols by requiring robust access controls, enhanced system monitoring, regular testing & assessment audits, and an overall risk-aware security culture.
Q: What challenges do companies typically face in achieving CIP compliance, and how can they overcome them?
A: Insufficient resources and lack of executive buy-in are common CIP compliance obstacles. Developing policies addressing shared responsibilities, procuring solutions built for compliance, and collaborating with knowledgeable vendors help in addressing these issues.
Q: How do NERC CIP standards work with other cybersecurity regulations?
A: NERC’s mappings show NERC CIP alignment with guidance like the NIST Cybersecurity Framework, enabling entities to leverage compliance efforts. They also demonstrate CIP’s role within the broader US regulatory landscape.
Conclusion – Keeping Up With NERC CIP Rules is Hard But Important
Following changing NERC CIP cybersecurity rules is difficult but key for companies that provide critical electricity services. This helps defend their sensitive computer systems against tricky cyberattacks.
As the rules advance to match new technologies, these companies should partner with computer security specialists and cybersecurity tool companies. Working together will help put protections in place that follow the rules and improve security.
Companies must keep strengthening their defenses so hackers don’t take over the important computer systems we all rely on.
