Bridging the Security Governance Divide in Utilities
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1 Bridging the Security Governance Divide in Utilities
2 About Me Energy Security Advisor to utilities, regulators, integrators, energy start-ups Member: GTM GridEdge Exec Council ISC-ISAC Corporate Board SME Contributor to: DOE Electricity Subsector-Cybersecurity Capability Maturity Model (ES-C2M2) & Risk Management Process (RMP) NISTIR 7628 Guidelines for Smart Grid Security & NIST Critical Infrastructure Security Framework (CSF) NARUC Cybersecurity Guidelines for State Regulators DOD Software Assurance Working Groups MIT Future of the Grid Report Founder of Smart Grid Security and DOD Energy blogs Bochman Advisors
3 Agenda New News Defining Security Governance Government Governance Guidance Utility CEOs and CISOs Bochman Advisors
4 New News FERC tells NERC we need new physical controls - stat! Financial Services realizing an OT problem of sorts: Windows XP in ATMs Target announces it s time to get a real CISO DOE EAC Security Governance success Bochman Advisors
5 Security Governance Defined (at the individual business level) Management through measurement and improved communications (vs. guessing, hoping, etc.) Including security considerations in all business decisions Organizational update actions that signal culture change to all stakeholders Bochman Advisors
6 Government Perspective
7 Energy: the most critical of all critical infrastructures Energy
8 The security of the grid is so important we ve assigned government agencies to watch over it States Federal
9 DOE NARUC NIST NRECA FERC/NERC ISO/IEC EEI CPUC Gov and Industry Guidance
10 Recent Government Guidance NIST Critical Infrastructure Security Framework (CSF) DOE s Risk Management Process (RMP) Federal government wants to see senior leadership playing a more active role in security risk management
11 Utility Perspective
12 That was Then: How Utilities (& others) Secured IT Pre-Smart Grid Protected PCs Protected IT networks Protected physical assets Bochman Advisors
13 This is Now Bochman Advisors
14 Organizational blind spots - Senior leaders & org structure dictate what s visible 14
15 Board of Directors CEO CFO COO GC VP IT / CIO VP Customer VP Transmission VP Distribution VP Risk VP Compliance Mgr / Dir CyberSecurity Security Manager Most utilities are still organized to meet yesterday s threats
16 Security Questions CEOs Should be able to Answer Am I making the right/best investments in security? Do I have a complete and accurate inventory of all assets requiring protection? Do I have the right security organization for my enterprise and is it aligned with our overall governance structure? CEO How do I communicate effectively to my board on security & privacy matters? 16 Do we have contingencies ready for major cyber security or privacy incidents? Can I trust the integrity of the data that s running our business? 2013 Bochman Advisors
17 Bridging the Utility Cyber Security Gap CEO & Board of Directors Security Leadership Bochman Advisors
18 Bridging the Utility Cyber Security Gap CEO & Board of Directors Other players & stakeholders Security Leadership CFO GC VP Risk VP Customer VP Operations CIO/ VP IT Bochman Advisors
19 Bridging the Utility Cyber Security Gap CEO & Board of Directors Drivers for Increased Other players Understanding & stakeholders & Collaboration Security Leadership CFO GC VP Risk VP Customer VP Operations CIO/ VP IT Bochman Advisors
20 Bridging the Utility Cyber Security Gap CEO & Board of Directors Drivers for Increased Understanding & Collaboration Security Leadership 1.Increasing interconnection of important systems CFO GC VP Risk VP Customer VP Operations CIO/ VP IT Bochman Advisors
21 Bridging the Utility Cyber Security Gap CEO & Board of Directors Drivers for Increased Understanding & Collaboration 1. Increasing interconnection of important systems Security Leadership CFO GC 2. Security VP breaches Risk viewed VP Customer as material risk VP Operations CIO/ VP IT Bochman Advisors
22 Bridging the Utility Cyber Security Gap CEO & Board of Directors Drivers for Increased Understanding & Collaboration 1. Increasing interconnection of important systems Security Leadership 2. Security breaches viewed as CFO GC material VP risk Risk VP Customer 3. Greatly heightened awareness 22 VP Operations CIO/ VP IT 2013 Bochman Advisors
23 Bridging the Utility Cyber Security Gap CEO & Board of Directors Drivers for Increased Understanding & Collaboration 1. Increasing interconnection of important systems 2. Security breaches viewed as material risk Security Leadership 3. Greatly heightened awareness CFO GC VP Risk VP Customer 4. Attacks growing in strength and frequency VP Operations CIO/ VP IT Bochman Advisors
24 CEOs: 2 Bridge building places to start
25 Board of Directors Financial Compliance Safety Environment Security 1: A new governance board or committee
26 Board of Directors Financial Compliance Safety Environment Risk Security Or add security to existing board or committee
27 Board of Directors CEO CFO COO GC VP IT / CIO VP Customer VP Transmission VP Distribution VP Risk VP Compliance Mgr / Dir CyberSecurity Security Manager 2: A new security position outside of IT & closer to top
28 Board of Directors CEO CFO COO GC VP IT / CIO VP Customer VP Security VP Trans VP Dist VP Risk VP Compliance It could go here
29 Board of Directors CEO CFO COO GC VP IT / CIO VP Customer VP Trans VP Dist VP Security VP Risk VP Compliance Or here
30 Board of Directors CEO CFO COO GC VP IT / CIO VP Customer VP Trans VP Dist VP Security VP Risk VP Compliance Or here
31 It s Starting in Some Places Already Feb 2014: Alliant recently created an executive-level opening company for overseeing cyber and physical security Alliant Energy CIO Patricia Kampling The position is designed to bring cyber issues out of the weeds of the IT shop, where CEOs generally don't tread
32 CISOs: Bridge building places to start CTO Erich Gunther
33 Approaches that Fail Attempt to explain issues technically Deluge with statistics FUD and The Sky is Falling Using regulations to fix problems
34 Approaches that Work Best practices catalog for practioners Value props w clear business metrics Security built into all processes & quality system Visible lines of ownership & responsibility Risk based model CEOs, lawyers, regulators, insurers can trust
35 Do these things Improve communications skills Get better versed in core business you re/we re protecting Take business value and risk management approach to security
36 CEO Grow the Business good things happen when they meet Security informs & supports business decisions CSO Facilitate/Integ rate with Business Reduce Business Risk Security controls align with corp risk tolerance Set & Enforce Security Policy Corporate Governance The human elements of security risk are managed Security & Resiliency Staffing & Training Cultivate Desired Culture Both lead by example with a focus on communication Promote Security-Aware Culture
37 Thank You
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