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Gerhard Brandt, ABB AG, BU Power Generation Cyber Security and Compliance in Increasingly Distributed and Aging Power Generation Infrastructures ABB Group March 11, 2013 Slide 1

A global leader in power and automation technologies Leading market positions in main businesses 145,000 employees in about 100 countries $38 billion in revenue (2011) Formed in 1988 merger of Swiss and Swedish engineering companies Predecessors founded in 1883 and 1891 Publicly owned company with head office in Switzerland

How ABB is organized Five global divisions Power Products Power Systems Discrete Automation and Motion Low Voltage Products Process Automation $10.9 billion $8.1 billion $8.8 billion 20,000 29,000 36,000 employees employees employees (2011 revenues, consolidated; including Thomas & Betts revenue for LP division) ABB s portfolio covers: Electricals, automation, controls and instrumentation for power generation and industrial processes Power transmission Distribution solutions Low-voltage products $7.7 billion 31,000 employees Motors and drives Intelligent building systems Robots and robot systems $8.3 billion 28,000 employees Services to improve customers productivity and reliability

Power and automation are all around us You will find ABB technology orbiting the earth and working beneath it, crossing oceans and on the sea bed, in the fields that grow our crops and packing the food we eat, on the trains we ride and in the facilities that process our water, in the plants that generate our power and in our homes, offices and factories

Situation of today The potential threat for IACS during the years 2010 and 2011 has increased significantly and today authorities like the German BSI (Bundesamt für Sicherheit in der Informationstechnik) note, that professional attacks from organized crime and intelligence agencies on industries, authorities and private individuals are a common fact. The methods and techniques involved get increasingly complex and sophisticated, resulting in growing effort and cost for the defense. Trojans like Stuxnet demonstrate, that IACS and SCADA systems are in the focus of such activities. The most effective means still being prevention. The legal status throughout Europe is still heterogeneous, as no common binding guidelines exist. However existing regulations resulting from various laws (e.g. in Germany SOX, HGB, AktG, KonTraG) indirectly demand corporations and individuals to take adequate organizational and technical precautions (obligation to exercise due care, risk management, liability for premises) as neglect may cause indemnification claims. IACS = Industrial Automation and Control System ABB Group March 11, 2013 Slide 5

Anticipated development (1) International, European and national standardization activities converge and a set of binding guidelines for suppliers, service providers as well as operators in Europe is on the horizon. On global scale the standards SO/IEC 27001 and 27002 are getting established and specifically for industrial automation ISA99 / IEC62443. The German government (BMI, ministry of interior) intensifies its activities with focus on critical infrastructures (kritische Infrastrukturen, KRITIS). These are defined as infrastructures whose failure would have a sustained impact on the security of supplies with considerable effect on public safety and other dramatic impacts. ABB Group March 11, 2013 Slide 6

Focus on Cyber Security solutions ABB Group March 11, 2013 Slide 7

Aspects of information security (1) Organization Personnel Organisation (ISMS) Proesses, responsibilities, security concepts, awareness and training of staff, Physical Security Compliance Process Control Security Administration & Maintenance Access Control Physical safety Security zones, access control, safety of System security System documentation (like project manual, maintenance manual, backup manual) System architecture, security zones Redundancy, availability, system hardening (DMZ) Network security Network interfaces, firewalls, local and remote address management, Remote Access WLAN, Mobile Computing, Intranet/Internet ABB Group March 11, 2013 Slide 8

Aspects of information security (2) Operations and communications management Protections from malware and trojans, vulneraribility management (e. g. closing of USB ports), user and rights management, handling of storage media Access to network, operating system and applications (local and remote access) Monitoring and diagnosis Safeguarding of business operations Data security and integrity (backup / restore) disaster recovery Handling of information security cases Compliance Manual and automated logging and protocols of conformity with rules and guidelines as audit preparation (audit trail) audits

Technical challenges Meeting a unique set of requirements Object under protection Risk impact Main security objective Security focus Availability requirements Information Enterprise IT Information disclosure, financial loss Confidentiality, Privacy Central Servers (fast CPU, lots of memory, ) 95 99% (accept. downtime/year: 18.25-3.65 days) Industrial Control Systems Physical process Safety, health, environment, financial Availability, Integrity, Privacy (SmartGrid) Distributed System (possibly limited resources) 99.9 99.999% (accept. downtime/year: 8.76 hrs 5.25 minutes) System Lifetime 3 10 Years 5 25 Years

Anticipated development (2) Standard NERC CIP IEC 62351 IEEE PSRC/H13& SUB/C10 IEEE 1686 IEC 62443 ISO-IEC ISO/IEC 27000-series (27001, 27002 / 17799) ISA-99 Main focus Cyber security regulation for North American power utilities Data and communications security Cyber security requirements for substation automation, protection and control systems IEEE standard for substation intelligent electronic devices (IED s) Industrial communication networks Network and system security (DRAFT) Information technology - Security techniques - Code of practice for information security management. Security for Industrial Automation and Control Systems Selected international standards and initiatives in the German market some de-facto standards establish themselves amongst involved parties ABB Group March 11, 2013 Slide 11

Product Lifecycle - Design & Implementation Standards and their scope Graphical representation of scope and completeness of selected standards *) source DTS IEC 62351-10 10: Security architecture guidelines

Anticipated development (3) Standard BDEW Whitepaper (bdew, Vattenfall, e.on, EnBW, itecplus) VDI/VDE guideline 2182 VGB Powertech technical guideline R175 Main focus Anforderungen an sichere Steuerungs- und Telekommunikationssysteme (requirements on safe control and communications systems) Informationssicherheit in der industriellen Automatisierung - Allgemeines Vorgehensmodell" (information security in industrial automation general process model) IT-Sicherheit in Erzeugungsanlagen (IT security in power generation plants) Selected German guidelines and initiatives Once a binding set of standards is established, operators and suppliers of products and solutions may strive or be forced for a certification of information security. In the German markets such a direction from BSI as well as TÜV can be noticed. ABB Group March 11, 2013 Slide 13

Symphony Plus Typical system architecture Inherent system security ensures plant integrity and confidentiality Integrated information management system optimizes business decisions Office Remote Workplace(s) Performance Monitoring and Office Remote Workplace(s) Optimization Tools Proven performance montoring, advanced control, and process optimization solutions to enhance energy and water efficiency, reliability, and plant productivity Office Network Router / Firewall Plant Information Management System Engineering Workplace(s) Operator Workplace(s) Videowall Operator Workplace(s) Scalable operations for large and small water applications Router / Firewall System Server Wireless Gateway Wireless Gateway Process Controller Safety Controller Process Controller IED (Intelligent Electronic Devices) System Network Comprehensive electrical and device integration improves plant visibility WAN Control Remote Logic Controller Fieldbus Interface Field Network I/O Modules I/O Modules Remote I/O MCB Soft Starter Flow Meter UMC Push Buttons Variable Speed Drives with Motor Single control offering for the entire water cycle

SCADA architecture examples: hydro power control SWITCH Elect. Opt. IEC870-5- 104 MODBUS SERVER SERVER +EWS PROFIBUS Remote Remote Remote Ethernet TCP/IP Fiber optic >6 Km Ethernet TCP/IP UDP Modulebus Fiber optic >1,2 Km Fieldbus Remote I&O ABB Inc. March 11, 2013 Slide 15 Remote I&O Remote I&O

Global cyber security demand The ABB perspective High demand seen by ABB, requirements clear Little demand seen by ABB, requirements unclear-> India? Map does not reflect global players such as BP, ExxonMobil, Shell, Daimler

Application example Symphony TM Plus Symphony Plus Workplaces Plant Network Symphony Plus Workplaces Compliance Management CM Access Management AM Host Intrusion Prevention System HIPS Host Intrusion Detection System HIDS Network Intrusion Detection System NIDS Security Event Management SEM DMZ WSUS, epo Group Policies Virenschutz Remote Service Router / Firewall Electronic Perimeter Protection UTM / Firewall Industrial Defender Symphony Plus Server Control Network O-net Melody ABB Group March 11, 2013 Slide 17

Cybersecurity as example of association work Multiple stakeholders from utility, industry, manufacturer, government Multiple, competing standards Multiple disciplines (automation, corporate IT, operations, security, ) Unclear cost / benefit analysis Industry specific appplication guidelines useful Definition of minimum requirements Technical issues (how to handle old, installed base) Share best prectices Example: VGB 175 ABB Group March 11, 2013 Slide 18

Cybersecurity as example of association work (deliverables) Guideline, recommendation, whitepaper Consulting and services Training Auditing and certification (technology, processes, organization, staff) Representation and lobbying in other institutions, assocations, governmental organization Collection and documentation about existing technology, use cases, etc ABB Group March 11, 2013 Slide 19

ABB Group March 11, 2013 Slide 20