The cybersecurity of critical U.S. infrastructure faces mounting challenges, with escalating cyber threats targeting utilities through third-party vendors and partners. Recent warnings from the White House and Environmental Protection Agency underscore the vulnerabilities of the nation's water and wastewater systems, highlighting an urgent need for enhanced security measures to mitigate third-party risk and safeguard essential services.
Throughout the industrial sector, third-party risks arise when external entities such as vendors, contractors, or service providers gain access to an organization's systems or data. A troubling statistic highlights the prevalence of these risks: 40 percent of operational technology (OT) security decision-makers identify third-party access as one of their top three security concerns.
This percentage indicates a significant vulnerability— that external partners can inadvertently provide a window into an organization for cyber attackers. Common weaknesses include inadequate security practices, a lack of regular security assessments, and the absence of stringent access controls - all of which can open the door to cyber threats that compromise critical infrastructure.
Strengthening the All Connections
Recent cybersecurity incidents starkly demonstrate the consequences of inadequate third-party risk management. For instance, an extensive breach occurred when hackers accessed a utility provider's operational network through a third-party vendor's compromised credentials. This breach facilitated the deployment of ransomware, resulting in significant operational disruptions and financial losses.
In another example, a utility company faced severe threats to its operational technology systems due to lax security measures from a third-party service provider. The incident exposed the utility to potential operational sabotage and data theft, underscoring the critical need for robust third-party risk assessments and security protocols.
Comprehensive policy management is critical to securing third-party interactions in the utilities sector, and any industrial control system, to ensure all external parties follow the same strict security protocols as the primary organization. This approach includes enforcing standardized cybersecurity practices, conducting regular vulnerability assessments, and implementing robust incident response strategies.
Companies can integrate operational technology (OT) with information technology (IT) systems, establishing standard security measures across all platforms. Key strategies include:
- Risk Assessment: Identify and evaluate the risks associated with third-party interactions.
- Define Security Policies: Establish clear guidelines that dictate the security requirements for third parties.
- Implement Segregation Controls: Segregate critical network segments from third-party access to minimize risk exposure.
- Continuous Monitoring: Deploy real-time monitoring tools to detect and respond to threats promptly.
- Regular Updates and Training: Ensure all security protocols are current and third-party personnel are trained in best security practices.
Continuous monitoring and frequent updating of security protocols are essential to adapt in response to the evolving cyber threat landscape and safeguard critical infrastructure against potential breaches.
Implementing a Robust Framework
A robust third-party risk management framework is essential to defend against cyber threats. Key to this framework is enforcing effective security measures, including compliance with IT and OT network segregation policies. These measures ensure that even if third-party systems are compromised, the critical operational technology components remain protected and maintain core operational integrity. Companies can achieve this by:
- Conducting thorough background checks. Evaluate third-party vendors' security protocols before granting access to network systems.
- Drafting and enforcing SLAs.. Service Level Agreements (SLAs) should explicitly outline third parties' security expectations and responsibilities.
- Using advanced authentication methods. Implement multi-factor authentication and continuous authorization processes for third-party access.
- Performing regular security audits. Conduct scheduled and random audits of third-party operations and security measures.
- Developing incident response plans. Develop and rehearse incident response plans that include third-party actors to ensure rapid and coordinated action during a breach.
By following these guidelines, organizations can mitigate risks associated with third-party vendors and service providers and secure their networks against external threats. This approach protects their operations and builds resilience against potential cyberattacks.
To protect against escalating cyber threats, utilities and manufacturers must prioritize mitigating third-party risks. Continuous customer education and the adoption of new security technologies, risk management strategies and strict network segregation policies will enable organizations to preempt potential third-party breaches.
