When it comes to cyberattacks, it’s no longer a matter of if it happens, but when.

For most businesses, the impact might include downtime, data loss, or reputational damage. But for energy companies, the consequences could be more dire. A single breach can interrupt power supply, shut down pipelines, and even put lives at risk.

In the energy sector, every second counts. It’s critical infrastructure. And when critical infrastructure is disrupted, the ripple effects are widespread. This is a reality that makes cyber security essential for every organization within the industry.

Let’s take a deeper look.

Most modern businesses depend on digital systems — their IT systems. So do energy companies, but many of them also use operational technology (OT), which are the systems that keep plants and pipelines running and stabilize energy grids. For years, these OT environments were kept separate from corporate IT systems.

That’s no longer the case. In an effort to be more efficient, improve reporting, and gain real-time insights, many organizations have integrated their OT and IT systems.

There’s no doubt this integration creates business value for organizations, but it also means added exposure because the attack surface grows. Once IT and OT are linked, a breach on the corporate side could impact operations.

And that’s not all. The risks only grow once you consider other factors that are unique to this sector. Here are a few more:

Safety implications: A cyber incident at a pipeline or a plant can put lives at risk, not just sensitive data.

Regulatory pressures: Energy companies face tight scrutiny and potential penalties as regulators respond to rising threats.

Geopolitical tensions: Nation-state actors may view energy as a strategic target when aiming to gain leverage or shake up an economy.

Legacy systems: These older systems weren’t designed with today’s cyber security requirements in mind, so in many cases they can’t be patched or updated effectively.

While every organization will have their own unique obstacles, most energy companies will grapple with a common set of cyber security challenges. Here are some of the top risks, along with some mitigation strategies:

IT/OT convergence

As mentioned above, connecting OT with IT delivers insight and efficiency but increases the size of what can be threatened and introduces new entry points. Without careful planning, a single compromised email can open the door to infrastructure compromise.

Phishing and social engineering

The oldest tricks in the book remain some of the most effective. A single click on a malicious link can lead to ransomware or stolen information.

Ransomware and extortion

Energy companies are prime targets because cyber criminals see them as being high value. When every second of downtime is costly, many organizations feel pressured to agree to the asks of threat actors.

Insider threats

Whether by accident or intentionally, those inside your organization can expose your systems to cyber threats.

Legacy or unsupported systems

Certain legacy OT and IT assets and systems can no longer be patched or updated. Organizations may rely on perimeter controls to protect them, but attackers who get inside can exploit these vulnerable systems.

Regulatory compliance

New legislations, such as Bill C-26 (revised as Bill C-8), highlight how seriously regulators take cyber security when it comes to critical infrastructure. If your company doesn’t comply, you could face hefty fines or other consequences.

Detection and response gaps

Every second counts when it comes to the energy sector. Without strong safeguards, monitoring, and clear processes in place, cyber incidents can escalate quickly and cause a ripple effect across your organization.

While the risks are complex, the most effective way to prevent cyberattacks involves consistency and preparation. Here are some effective cyber security controls:

Multi-factor authentication (MFA): MFA enhances security by asking users for multiple forms of identification before granting access to certain accounts or systems, like across your IT and OT environments.

Regular patching and updates: Update and patch your systems regularly. If your organization depends on a legacy system, consider implementing a more modern one or compensating with additional controls and monitoring.

Employee training and awareness: Provide ongoing employee training to make your team aware of emerging cyber threats, reduce the rate of successful social engineering attacks, and encourage safe practices.

Document processes: Establish clear, detailed processes for cyber security protocols, escalation, and response. This ensures everyone knows what to do if they identify a threat or in the event of an attack.

Strong organizational governance: Develop strong, integrated policies and standards that apply consistently across both IT and OT environments, making sure cyber security is managed responsibly throughout your entire organization.

Incident response planning: Develop an incident response plan to make sure your organization is ready to act quickly if the unthinkable happens.

Your energy company can’t afford to improvise when a cyberattack occurs. An effective incident response plan defines who does what, how decisions are escalated, and what actions need to be taken in the first few minutes, hours, and days after an incident.

Planning alone isn’t enough. Regular rehearsals and practice through faux scenarios can help make sure you and your team are ready to respond, reduce response time, and minimize any disruption.

Effective cyber security needs a multi-faceted approach. The National Institute of Standards and Technology (NIST) Cybersecurity Framework offers a useful model for developing safeguards around the following core pillars:

1. Identify: Understand your organization’s systems, assets, data, and risks.
2. Protect: Implement safeguards to limit or contain the impact of potential attacks.
3. Detect: Put processes in place to uncover cyber events quickly.
4. Respond: Establish procedures for taking action once an incident is detected.
5. Recover: Maintain plans for resilience and to restore operations and capabilities after a cyber incident.

Additionally, there’s one more consideration you may want to add:

6. Govern: Establish, communicate, and monitor the organization’s cyber security risk management strategy, expectations, and policy.

A strong cyber security program balances investment across all six of these functions. Focusing only on one pillar, like ‘protect,’ can leave your organization hanging out to dry in the event of a cyberattack.

We know, there are a lot of moving parts when it comes to protecting your organization from cyberattacks. The most impactful first step you can take is to understand where your risks lie. A cyber risk assessment can give you visibility into the unique vulnerabilities across your organization. This, in turn, can help you develop a roadmap for improvements and priorities.

Every business will have a different risk profile and appetite for risk. Without an assessment from an unbiased third-party advisor, it’s very difficult to know which exposures are most urgent or which upgrades and investments would make the biggest difference.

Technical security assessments — including penetration testing and vulnerability assessments of IT and OT systems, as well as their associated networks — provide valuable insights into potential technical vulnerabilities within these environments. They also provide insight into ways these weaknesses might be exploited by cyber criminals.

By implementing systematic security assessments across your entire infrastructure, along with targeted evaluations of individual systems, you enable the prompt detection of vulnerabilities and facilitate the initiation of corrective measures.

Engaging a third-party independent testing team with specialized experience in evaluating energy organizations and OT systems can offer your company significant advantages. These environments are complex, and a knowledgeable advisor can help you navigate those complexities.

Canada’s energy sector is up against some of the most sophisticated cyber security challenges. And with the integration of IT and OT, the role of energy as important infrastructure, and the safety implications of an interruption in operations makes strong security a must-have.

Here’s the good news: MNP’s team of advisors work with energy companies across Canada to help them identify vulnerabilities, improve their defenses, and build resilience.

Want to know where your organization is most vulnerable and how to fix it? Click the link here to learn more.