Monday, December 23, 2024

Was this the first risk-based CIP requirement?


On July 4, 2016, I wrote about a meeting I had just attended: the second meeting of the NERC “Project 2016-02  Modifications to CIP Standards” drafting team. Coincidentally, this team finally finished their work earlier this year, when the revised CIP standards to accommodate virtualization were approved by the NERC ballot body, approved by the NERC Board of Trustees and submitted to FERC for their approval.

This meeting occurred soon after an important turning point in the CIP standards:

1.        The CIP versions 5 and 6 standards had come into effect on July 1, 2016 – i.e., three days before I wrote the post.

2.        The “CIP Mods” team (as the new team came to be known) was created to address issues that had come to light as NERC entities were preparing for implementation of CIP v5 and v6.

In my post, I noted an issue that I had started writing about at the beginning of 2016:

…since the beginning of this year I have put out a few posts - such as this one and this one - that take a different tack. They don’t criticize the v5 wording, but do criticize the whole idea of what I call “prescriptive standards” – which is what all the CIP versions have been. It may be clear from these two posts that I think the prescriptive approach doesn’t work for cyber security standards, even though it might be fine for the other NERC standards. And since the requirements of CIP v5 and v6 are prescriptive ones (with two exceptions, which I’ll discuss below), it seemed certain that v7 will be prescriptive as well.

I cited two other posts in the above paragraph. Near the end of the first of those two posts (from February, 2016), I asked, “Is CIP v5/v6/v7 Sustainable?” I pointed to the new items that were on this new drafting team’s plate (or might be soon). I wondered whether they would result in even more prescriptive requirements (as if the CIP community didn’t have enough of those already). I added:

I have asked a small number of compliance people for NERC entities what percentage of every dollar they spent on CIP compliance actually went to cyber security and what percentage went to the paperwork required to prove compliance. Of course, there is no objective way to measure this, but the estimates I have received range from 35 percent to 70 percent. Maybe the average is 50 percent, but’s let’s assume my small sample is biased downward and the average is closer to 70 percent. Even this figure means that 30% of every dollar spent on CIP is only spent to prove compliance, not to improve cyber security. To phrase it differently, if we could figure out a way to get the percentage of spending that goes to security up to 90%, we would in principle have up to a 20% increase in security (budgets) without having to spend a single additional dollar.

I also quoted a respected utility cyber security manager who asked, when told that virtualization was next up in the new CIP standards lineup, “Why can’t we just be trusted to do the right thing, rather than have to spend a huge amount of time documenting our compliance for virtualized systems?”

That’s really the issue, isn’t it? Why should NERC entities have to spend so much time and money documenting compliance with prescriptive CIP requirements, when most other mandatory cybersecurity compliance regimes (PCI, HIPAA, etc.) have managed to develop requirements that let the entity focus on achieving an objective, not on taking a set of prescriptive steps to prove their compliance in every instance?

Of course, the answer to that question is that NERC entities should not have to spend so much time and money documenting compliance with prescriptive CIP requirements. How can the requirements be revised (or more importantly written differently in the first place) to eliminate this problem?

I didn’t answer that question in the February 2016 post, but I did in the July 4 post that referenced it. The second half of that post concentrated on the most important item on the drafting team’s agenda for that meeting: fixing the definition of “low impact external routable connectivity” (which was at the time affectionately known as LERC) found in the original version of CIP version 6[i].

LERC (a term that was invented for use with CIP v6) turned out to be a mistake and a big source of confusion when NERC entities prepared to comply with V6. Briefly, LERC was intended to be the low impact version of External Routable Connectivity (ERC), a term invented with CIP v5, which only applies in high and medium impact environments.

However, it turned out that the requirement where LERC applied (CIP-003-6 R2, Attachment 1 Section 3) implicitly allowed LERC to be “broken” by a number of factors; this led to long arguments between NERC entities and their auditors about whether LERC was completely broken by a particular measure like a data diode, or whether it was only partially broken by a measure like a firewall. In the first case, the entity would have been found compliant with the requirement; in the second case, it would not have.

It was quite interesting to watch the SDT, during the 2 1/2-day meeting, evolve from trying to make this a workable prescriptive requirement to realizing that couldn’t happen, since doing so would make both the requirement and the definition a hopeless mess. At that point, it seems “another observer” (although I can’t remember who that was) suggested that the SDT should “rewrite the requirement so that it simply stated that an entity with LERC needed to take steps to mitigate the risk posed by LERC and discuss different options for doing this in the Guidelines and Technical Basis section.”

In other words, the other observer realized it was a huge waste of time to torture the requirement until it yielded a fixed set of measures that the entity could take to “break” LERC (and thus comply with the prescriptive basis of the requirement). Instead, the person suggested it was better to “rewrite the requirement so it simply stated that an entity with LERC needed to take steps to mitigate the risk posed by LERC and discuss different options for doing this in the Guidelines and Technical Basis section.”[ii]

I found this to be quite interesting, because the other observer admitted it would never be possible to treat this as a purely prescriptive requirement, for which the Responsible Entity would be given an up-or-down judgment of compliance. Instead, the entity needed to decide what was the best way for them to mitigate the risk in question; it was up to the auditor to decide whether the measures the entity took sufficiently mitigated the risk.

Folks, this was heady stuff! Here was a revised NERC CIP requirement for which the goal of compliance was simply to mitigate the risk addressed by the requirement, without trying to a) prescribe the steps required to mitigate that risk or b) attempt to measure the total risk that was mitigated by the steps the entity took (which would have been a fool’s exercise, in any case).

In other words, this may have been the first NERC CIP requirement (and perhaps the first NERC requirement, period) whose objective is clearly risk mitigation[iii] and nothing more (there already were at least two requirements in CIP version 5 that were in fact risk-based, including CIP-007 R3 anti-malware and CIP-011 R1 information protection. However, neither one of them explicitly mentions risk or risk mitigation).

Since 2016, other risk-based (which NERC calls “objectives-based”) requirements, and even whole standards (CIP-012, CIP-013 and CIP-014) have been developed and put into effect. Moreover, I am reasonably sure that after prescriptive requirements like CIP-007 R2 and CIP-010 R3 were developed as part of CIP version 5 (in 2011 or 2012, probably), not a single new prescriptive CIP requirement has been developed. Moreover, I’m certain that no new prescriptive CIP requirements ever will be developed; there clearly is no more appetite for them in the NERC community.

This leaves open the big questions, How are risk-based CIP requirements being audited today? And how should they be audited? These questions are especially important because any new or revised CIP requirements that will apply to assets in the cloud will have to be risk-based. Will developing procedures for auditing risk-based CIP requirements require changes to the NERC Rules of Procedure? Given that I haven’t found anyone who can tell me exactly what is required to change the RoP, that might not be a lot of fun…

Any opinions expressed in this blog post are strictly mine and are not necessarily shared by any of the clients of Tom Alrich LLC. If you would like to comment on what you have read here, I would love to hear from you. Please email me at tom@tomalrich.com.

My book "Introduction to SBOM and VEX" is available! For context, see this post.


[i] That definition was “Direct user-initiated interactive access or a direct device-to-device connection to a low impact BES Cyber System(s) from a Cyber Asset outside the asset containing those low impact BES Cyber System(s) via a bi-directional routable protocol connection.”

[ii] The “Guidelines and Technical Basis” section of CIP-003 has been renamed “Supplemental Materials” and is now found at the end of the CIP-003-8 standard (the current version) starting on page 33. It provides diagrams of ten possible methods which the entity might take to mitigate the risk posed by LERC, without saying which of those is the “best” or the “most compliant”.

[iii] CIP-003-8 R2 Attachment 1 Section 3 doesn’t explicitly mention risk. However, it requires the entity to “Permit only necessary inbound and outbound electronic access as determined by the Responsible Entity.” Since the entity is allowed to determine for itself what constitutes “necessary” access and since any judgment about whether something is necessary must always consider risk, this makes it a risk-based requirement in my book.

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