Enhancing Cybersecurity through NERC CIP

Energy and utility companies are the backbone of our economy and way of life, and any downtime can have severe consequences. Yet, as cyber threats continue to loom large over the industry, organizations struggle to manage the risk of cyber attacks, in part due to the broad attack surface of connected industrial devices that need robust protection.

The North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) is a set of requirements designed to fortify the power grid against cyber threats. Compliance with NERC CIP is mandatory for energy and utility providers, but beyond that, it is essential to safeguard critical infrastructure in the energy sector. 

This blog explores the importance of NERC CIP, its standards categories, and how Asimily can streamline the journey of NERC CIP compliance.

What is NERC CIP

NERC is a not-for-profit international regulatory authority that plays a critical role in ensuring the security and reliability of the bulk power system (BPS), commonly known as the electrical grid, in North America. NERC was formed as a volunteer organization to promote reliable power transmission in 1968, three years after a massive blackout that impacted much of the northeastern United States and southeastern Canada.

Since then, advancements in technology have resulted in an increasingly interconnected economy, bringing industries and tools that have historically been “offline” into a modern era, including those in the energy sector. Initially developed in 2006, NERC CIP standards were designed to ensure the reliability of the bulk electric system (BES) from the growing risk of cyber threats. CIP standards cover the critical infrastructure of all organizations that supply electricity. Compliance is mandatory, and failure to meet CIP standards can result in fines or other punitive actions. 

To meet the needs of an evolving threat landscape, NERC CIP standards evolve over time to account for new risks, such as those associated with removable media, the supply chain, and more. 

Why is NERC CIP Important?

Energy and utility providers deliver essential services, which in turn makes them highly vulnerable to cyber threats from malicious actors seeking to monetize their crimes or cause disruption. According to the IBM X-Force Threat Intelligence Index 2024, energy organizations were the fourth most attacked industry, representing 11.1% of attacks.

NERC CIP standards help mitigate the risk of cyber attacks that could lead to widespread outages or other adverse impacts on critical infrastructure. Already, the world has seen the potential for widespread damage due to cyber attacks on the energy sector.

In 2021, ransomware became a household name after an attack on Colonial Pipeline, a major fuel provider, severely disrupted the fuel supply on the East Coast, causing panic. The attack resulted in increased scrutiny on cybersecurity in the energy sector, and the intervening years have seen new cybersecurity laws and reporting requirements. Reportedly, threat actors gained access to the Colonial Pipeline network through an exposed password for a virtual private network (VPN) account, highlighting the need for energy and utility providers to have strong cybersecurity controls and layered defenses.

NERC CIP Compliance: Who Needs to Comply?

NERC CIP compliance is mandatory for a wide range of organizations, including some outside the energy sector. NERC CIP standards apply to “responsible entities” within North America, including BES owners, operators, and users. This encompasses energy and utility providers, transmission operators, and power generators that operate assets deemed critical to the grid infrastructure. Manufacturing companies that provide components used in the BES also fall under NERC CIP and must ensure their products adhere to these standards to mitigate supply chain risks.

What are the NERC CIP Standards?

NERC CIP standards require energy and utility providers to identify critical assets and implement various controls and policies to ensure the security of those devices from a mix of human, physical, and cyber risks, as well as plan for recovery from a cyber incident or disaster. The standards are based on the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF), a set of guidelines, standards, and best practices to help organizations manage and reduce their cyber risk.

As of 2024, NERC has released 13 standards covering various aspects of cybersecurity:

• CIP-002-5.1a BES Cyber System Categorization —  To protect BES Cyber Assets from compromise, organizations need the ability to identify and categorize all devices.
• CIP-003-8 Security Management Controls — Establish accountability for BES cyber systems and identify policies around security controls and emergencies.
• CIP-004-6 Personnel & Training — Provide training for personnel on risk and access control management and cybersecurity awareness.
• CIP-005-6 Electronic Security Perimeter(s) — Manage access to BES cyber systems using an Electronic Security Perimeter (ESP), a virtual barrier through which data flows are monitored.
• CIP-006-6 Physical Security of BES Cyber Systems — Manage physical access by implementing a physical security plan, a visitor control program, and maintenance and testing programs.
• CIP-007-6 System Security Management — The technical, operational, and procedural elements for securing systems within the ESPs.
• CIP-008-6 Incident Reporting and Response Planning — Prepare for a cyber incident and provide guidelines on incident response requirements.
• CIP-009-6 Recovery Plans for BES Cyber Systems — Address how to recover from a cyber incident.
• CIP-010-3 Configuration Change Management and Vulnerability Assessments — Prevent and detect unauthorized change management by specifying configuration change management and vulnerability assessment requirements.
• CIP-011-2 Information Protection — Identify information that could adversely impact BES functionality if misused, compromised, or stolen.
• CIP-013-1 Supply Chain Risk Management — Implement security controls for supply chain risk management.
• CIP-014-2 Physical Security — Identify and protect transmission stations, substations, and their associated primary control centers.

These standards are the cornerstone of the dependability and security of our energy infrastructure, and compliance creates more a more resiliant energy sector.

Challenges and Benefits of NERC CIP

Cyber threats against the power grid are a persistent risk, and the convergence of IT, Internet of Things (IoT) and Operational Technology (OT) environments has increased the complexity and vulnerability of previously isolated industries and networks. By adhering to NERC CIP standards, energy and utility providers ensure the consistent and reliable operation of the BES and, by extension, the vitality of the economy and public welfare. 

However, compliance may come with challenges, as it requires significant resources, both in personnel and technology, to monitor and protect the vast array of cyber assets within the energy sector. NERC CIP standards are also complex and may be challenging for providers to implement and consistently meet all requirements. 

How Asimily Supports NERC CIP Compliance

The rapid increase of cybersecurity threats makes securing our critical infrastructure an imperative. Recently, Asimily was selected to participate in the second cohort of the Department of Energy’s Clean Energy Cybersecurity Accelerator (CECA). The CECA program evaluates solutions for identifying OT, IoT, and IT assets connected to utility infrastructures. By participating, we will contribute to raising the baseline security of the electric grid and use our capabilities to identify OT and IoT assets to protect utilities against even the most advanced cyber threats.

By partnering with Asimily, emergy and utility providers can protect their infrastructure from cyber threats and acheive compliance with NERC CIP. Asimily’s platform covers the full range of CIP standards, including inventory, vulnerability handling, incident response, and disaster recovery planning.

Asimily’s inventory and vulnerability detection capabilities ensure you can identify critical assets and resolve business-critical weaknesses across your entire attack surface. In the event of a cyberattack, our platform, with its rapid response features, quickly captures packets to aid incident responders. With Asimily, security teams can keep a handle on their IoT attack surface and ensure they are as safe as possible, providing a sense of reassurance and security.

To learn more about Asimily, download our whitepaper, IoT Device Security in 2024: The High Cost of Doing Nothing, or contact us today.