http://www.ibm.com/smarterplanet/us/en/smart_grid/article/cyber_security.html?cmp=agus_cxosp2gridsec-20100426&cm=c&csr=endsecurity&cr=slideshare&ct=usbrb401&cm_mmc=agus_cxosp2gridsec-20100426-usbrb401-_-c-_-endsecurity-_-slideshare IBM End-to-End Smart Grid Security Involving IT Security and Enterprise Asset Management

1. White paper
September 2009
IBM end-to-end security for
smart grids

2. IBM end-to-end security for smart grids
Page 2
Introduction
Contents
The electric grid has been providing reliable electric energy for decades.
Comprised of generating, transmission, and distribution equipment along with
2 Introduction
its associated control systems and operating staff, the electric grid is vital to
3 Why we need a smart grid
4 Security for the smart grid the world. And when it fails, civilization comes to a standstill.
5 How can IBM address
The grid infrastructure has been subjected to minimal maintenance-mode
smart grid security?
6 Security for the utility
investment for decades, and it needs to be overhauled. An aging workforce,
business rising energy costs, globalization, environmental issues, and terrorism or mali-
6 Security for advanced cious abuse of these systems threaten the grid’s sustainability. Security con-
metering data manage- cerns for these critical infrastructures in North America and Europe have
ment systems
recently been heightened.1
8 Security for SCADA
networks Around the globe, the reliability of the grid is governed by various entities:
10 Supporting Critical government mandates and commissions, industry consortiums, and regulatory
Infrastructure Protection
bodies. In December 2008, the U.S. Department of Energy (DOE) published a
standards
14 Conclusion report on the nation’s goal to transform its energy grid into a more intelligent,
15 For more information resilient, reliable, secure, self-balancing, and interactive network.2 In
March 2009, the U.S. Federal Energy Regulatory Commission (FERC) pro-
posed a policy statement and action plan that provides guidance for the devel-
opment of a smarter grid for the nation’s electric transmission system. This
plan focuses on the development of key standards to achieve interoperability
of smart grid devices and systems.3 An IBM white paper published five years
ago concurs with these views of DOE and FERC to build smart grids.4
The Council of the European Union recently adopted a Council Directive
for the identification and designation of European critical infrastructures and
the assessment of the need to improve their protection.5 While EU member
states are responsible for policies regarding the security of energy facilities in

3. IBM end-to-end security for smart grids
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their territories, the European Commission for Energy is responsible for
Highlights developing pan-EU critical infrastructure protection policies and recommen-
dations.6 In the UK, the Centre for the Protection of National Infrastructure
(CPNI) is the government authority that provides protective security advice to
businesses and organizations across the national infrastructure.7
This paper focuses on the security aspects of protecting the electric grid. It
discusses the end-to-end security needs and solutions at various points in the
smart grid chain. Security solutions related to the North American Electric
Reliability Corporation – Critical Infrastructure Protection (NERC-CIP)
requirements are used as examples of best-practice methods for securing the
grid. In addition, this paper addresses security for remote device monitoring,
Supervisory Control And Data Acquisition (SCADA) systems, and the
Advanced Meter Infrastructure (AMI). The paper then explains how IBM soft-
ware, hardware and services can help you meet these regulations and security
requirements.
Why we need a smart grid
A smart grid applies a set of diverse The concept of a smart grid is the application of a set of diverse digital tech-
digital technologies to enhance the nologies that enhance the value chain of the electric power industry. These
value chain of the electric power digital technologies, comprised of new devices and applications, some of
industry, improving not only man- which are Internet Protocol (IP) enabled, will aid in the sharing of informa-
agement of energy flow but also tion and coordination of management of the generation, transmission, and dis-
information exchange and equip- tribution aspects of the infrastructure across distributed energy resources.
ment operation.
Grid modernization will overhaul the energy industry, creating better visu-
alization and control for operators. The application of digital technologies can
help reduce peak demand through dynamic optimization, reduce operations
and maintenance costs, integrate renewable sources of energy, improve grid
reliability, and make transmission and distribution more efficient. Such effi-
ciencies can be established only with smart devices and applications that
enable a finer level of visibility, control and automation.

4. IBM end-to-end security for smart grids
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On the residential front, consumers can be given more options to control
Highlights home appliances and to derive on-demand information to better understand
and manage their consumption.
We need a smart grid to manage not only energy flow but also information
exchange and equipment operation. Regulations imposed by governments or
industry consortiums oversee the development and enforcement of reliability
standards and monitor the bulk-power systems. The stakeholders of the elec-
trical grid include independent service operators (ISOs), remote transmission
operators (RTOs), various utilities, and consumers.
Security for the smart grid
Security is a vital element of any technology related to sensitive assets, and
new technological advancements force organizations to face new security con-
cerns and risks. When devices like smart meters are made more secure, their
business value increases because organizations can respond dynamically and
with confidence to new market opportunities or changing conditions. This
allows for improved efficiency, reduced costs, and improved continuity of serv-
ices. Robust security for the grid can have a tremendous positive impact, as a
lack of security directly threatens the safety of the public and all of those who
are affected by grid failures.
A digital infrastructure can be more As an example, there is a global effort to transform the electric grid to a
flexible and dynamic, but it can also digital infrastructure. A fundamental move like this is considered necessary in
introduce new security vulnerabili- order to keep up with energy and utility operational demands while maintain-
ties that threaten the safe and effi- ing or improving the bottom line. A digital infrastructure can be more flexible
cient functioning of the grid. and dynamic; however, such a network may expose the critical infrastructure
to additional security concerns such as unapproved access and cyber attacks.

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A lack of adequate security in the energy industry could pose threats of serv-
ice disruption, which can impede safe and efficient functioning of the system.
Added layers of security controls, policies, and procedures are necessary to
help protect and manage the grid.
The best approach to securing smart grids is to identify and quantify the
risks across the entire value chain, develop the appropriate policies and con-
trols to manage these risks, deploy the policies and controls, and then perform
systematic, periodic reviews, including vulnerability testing.
How can IBM address smart grid security?
IBM has been very successful in providing security consulting, design, build,
and managed services solutions for critical infrastructure in a wide range of
demanding industries, including defense, financial services, and energy and
utilities. IBM security solutions are based on the IBM Security Framework
(see Figure 1), which defines an end-to-end approach to developing, deploying
and supporting security solutions across domains of people, networks, applica-
tions, data, and the physical plant.
Figure 1: IBM takes a holistic approach to security through the IBM Security Framework.

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IBM has the technology and expertise to deploy end-to-end security solutions
Highlights for smart grid implementations, and is committed to providing security solu-
tions within the context of regulatory standards.
IBM has the technology and expert-
ise to deploy end-to-end security Security for the utility business
solutions for smart grid implemen- In-depth IT security design principles state that better security management is
tations, and is committed to provid- achieved when an entity is protected by not just one layer or one component,
ing security solutions within the but by multiple, diverse mechanisms. These and many other IT security prin-
context of regulatory standards. ciples are addressed by global IT security standards ISO 27002:2005 and
ISO 15408. They cover areas such as defense-in-depth principles, trusted and
consistent identities, authentication and access control, information flow con-
trol, encryption of sensitive data at-rest and in-transit, audit and compliance,
and resiliency. All energy and utility organizations should leverage these prin-
ciples for their corporate business and IT infrastructures.
Business applications can pose a serious security threat when accessed by
unauthorized users. Applications can produce unintended results with mal-
formed input data. Thus, utility applications must be immune to issues such
as suspicious demand-response bids from a home, a negative meter reading,
or more subtle but seemingly valid scenarios. IBM can help utilities scan
applications with security penetration testing for vulnerabilities before they
are deployed and while they are in operation.
Security for advanced metering data management systems
IBM is working with utilities to implement smart meters as a core component
of a new intelligent utility network infrastructure that uses digital technology.
Many meter vendors have implemented their own protocols between the smart
meter and the head-end collectors to comply with the security requirements

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released by the Advanced Metering Infrastructure (AMI-SEC) Task Force.8
Highlights These security requirements take into account security standards from organi-
zations such as NERC, IEC, and National Institute of Standards and
Technology (NIST).
Advanced meter management from While the jurisdiction between smart meters and the head-end collectors
IBM is a cornerstone of the often lies with the meter vendor of choice, the utility meter network data is
IBM Intelligent Utility Network fed into different business processes and applications such as meter demand
solution suite. management, enterprise asset management, financial management, customer
support, and outage management. IBM has been working with utility
companies to rapidly adopt a service-oriented architecture (SOA) approach for
such business processes and applications. Advanced meter management from
IBM is a cornerstone of the IBM Intelligent Utility Network solution suite.9
The IBM Solution Architecture for IBM has also developed the Solution Architecture for Energy (SAFE), a
Energy (SAFE) framework enables framework which enables integration across the enterprise with grid and dis-
the utility to build and extend new tribution management, finance and administration, customer management,
services to customers easily and human resources, and procurement. As shown in Figure 2, the enterprise por-
cost-effectively through the effi- tion of SAFE is based on SOA, which enables the utility to build and extend
cient flow of information across the new services to customers easily and cost-effectively through the efficient flow
enterprise. of information across the enterprise. This architecture is intended to provide
business applications and services that can securely interoperate with business
partners, suppliers, regulators, and utility customers while securely maintain-
ing the confidentiality, integrity, and accountability of data exchanged, and
that can also link to embedded and operational systems.

8. IBM end-to-end security for smart grids
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Figure 2: The IBM Solution Architecture for Energy (SAFE) framework for utilities enables secure integration
across the enterprise.
Security for SCADA systems
IBM recognizes that security for the smart grid goes beyond the business and
IT domains. Conventional enterprise IT security measures must be adapted
and extended into the industrial process control systems, which involve a myr-
iad of proprietary interfaces, protocols, and heterogeneous devices spread over
a large geographic and governance space. The challenge for smart grid secu-
rity is that there are two distinct spaces that must be bridged securely.
The business enterprise operations of the energy utility often engage in
data sharing that relies on the Internet as well as corporate intranets and
extranets. Existing programmable logic controllers, remote terminal units
(RTUs), and SCADA systems may have been designed with security based on
physical isolation. Some utilities are using corporate intranets or even the
Internet to access devices on the control systems in order to increase produc-
tivity and offer seamless connectivity. These approaches require thoughtful
analysis because they may introduce new security vulnerabilities.

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Industrial control systems security typically involves securing two different
computing systems and networks. First, the operator consoles and applications
that use commercial operating systems must be secured. These consoles are
typically protected by enterprise role-based access control and governed by
business-driven policy.
Second, the process equipment control systems that receive commands,
measure data, and generate actions and events must be secured. These field
devices were designed to reside in isolated process-control networks, with the
assumption that only a few, trusted operators would have the ability to access
them. IP-enabling this field equipment into intelligent electronic devices
(IEDs) allows for seamless remote control but can make the control infra-
structure more vulnerable. Proper network demarcation and protection of net-
works with appropriate security controls is essential for robust smart grid
security (see Figure 3).
SCADA network TRANSMISSION AND
Meter to concentrator systems SUBSTATION SYSTEM
Generating station
DISTRIBUTION
SYSTEM
Step-down
Residential substation WIRELESS
customer COMMUNICATIONS LINK Utility
Commercial
customer
Concentrator Concentrator
WIRELESS
Substation remote COMMUNICATIONS LINK Advanced metering data
monitoring equipment management system
Utility communication link
Figure 3: Robust smart grid security addresses security focus points all along the utility value chain.

10. IBM end-to-end security for smart grids
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IBM participates in open security standards committees and embraces these
Highlights standards to facilitate integration with industry-leading components, including
integration with different end-point devices and with independent service ven-
dors (ISVs) who are helping to create successful solutions. This is essential for
SCADA security where there are several players that comprise the process
control grid equipment.
Remote device monitoring is the key to enhancing the reliability of the
grid. The substations along the electricity supply chain contain many RTUs or
IEDs. However, the monitored data from these substations can only be relied
upon if the integrity of the data is assured by the security of the substation
equipment. Currently, there is a need to perform case-by-case technical
assessments of vendor products, studying the interfaces they expose and the
protocols they use so that their security can be assured within the greater
cyber security context. Security for such devices is being standardized accord-
ing to the IEC/TS 62351 and 62443 standards.
IBM’s IT security capabilities can be As more standardization occurs in smart grids, the process control networks
used for remote device monitoring, can benefit from lessons learned from IT networks running business applica-
along with enterprise asset tions. This allows for some Internet technologies to be applied for remote
management software and grid device monitoring where applicable. Timing and deterministic properties have
operations. to be evaluated so security does not disrupt the prime mission of these sys-
tems. IBM’s IT security capabilities can be used for remote device monitoring,
along with enterprise asset management software and grid operations.
Supporting Critical Infrastructure Protection standards
Most countries have developed mandatory reliability standards applicable to
all energy-producing and transmitting utilities, like the NERC Critical
Infrastructure Protection (CIP) standard in North America.10 One area of regu-
latory reliability specifically addresses protecting electric grid bulk-power
cyber assets.

11. IBM end-to-end security for smart grids
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IBM can help utilities comply with critical infrastructure protection stan-
Highlights dards like the ones listed in NERC CIP-001 through CIP-009 by applying
security offerings at consulting, design, development, build, and operational
IBM can help utilities comply with
levels. Leveraging the IBM Security Framework infuses security into the
critical infrastructure protection
lifecycle of energy management software and the networking of field
standards such as NERC-CIP by
control devices.
applying a range of industry-
leading security solutions. Sabotage Reporting (CIP-001) – NERC provides directives and proce-
dures for detection, recognition and reporting of sabotage events. It specifies
procedures for communications to appropriate parties and local authorities. It
expects security monitoring tools to provide near real-time notifications for
reporting. IBM solutions enable the utility to continuously monitor security
violations during operations, as well as detect out-of-compliance conditions.
These products can even help track user activity for privileged users, includ-
ing physical location, deterring insider attacks.
Critical Cyber Asset Identification (CIP-002) – NERC has recognized
the need for identification and documentation of critical cyber assets.
Identifying these assets and their relationships helps lay the foundation for
applying security principles within each asset’s function as well as communi-
cations between the asset and other assets in the grid value chain. IBM can
assist in building an integrated asset management solution.
Security Management Controls (CIP-003) – This directive calls for
responsible organizations to document and implement a cyber security policy
to represent the company’s commitment to security and their ability to secure
critical cyber assets. IBM can assist with a comprehensive cyber security solu-
tion with functions like policy management, authentication and authorization

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of grid systems commands, protection and inspection of all XML traffic across
Highlights network boundaries, management of keys used in encryption of data stored on
tapes and disk, enablement of change management processes for configuration
changes to cyber assets, comparison of activity logs against security policies,
and provision of centralized identity, access, attestation and audit services.
Personnel & Training (CIP-004) – With this directive, NERC defines the
obligations of utility management to conduct thorough personnel risk assess-
ments in accordance with federal, state, provincial, and local laws. All person-
nel having authorized cyber access or authorized unescorted physical access
to critical cyber assets as well as field assets must get access on a “need-to-
know” basis. IBM solutions can help oversee the entire process of managing
personnel risk assessments, including enrollment, proofing, and background
checks as part of the identity vetting process. IBM also provides tools for man-
aging learning/training programs.
Electronic Security Perimeter (CIP-005) – According to NERC, the util-
ity is responsible for ensuring that every critical cyber asset resides within an
electronic security perimeter. This perimeter needs to be identified and all
access points to it need to be identified, documented, and controlled.
IBM solutions for intrusion and anomaly detection can not only protect IT
networks from worms, malware and viruses, but also monitor traffic between
intelligent field devices for signs of suspicious activity.
IBM’s command and control center Physical Security of Critical Cyber Assets (CIP-006) – This directive
solution provides advanced physi- defines the physical security of a critical cyber asset as being comprised of five
cal security integration, enabling distinct elements: deterrence, detection, assessment, communications, and
organizations to control, monitor
and maintain disparate security
systems and assets through a sin-
gle interface.

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response. IBM’s command and control center solution provides advanced
Highlights physical security integration, enabling organizations to control, monitor and
maintain disparate security systems and assets through a single interface.
Systems Security Management (CIP-007) – This item in the standard
directs security management and testing procedures, patch management,
account management, and vulnerability analysis. Organizations need to ensure
that new cyber assets and significant changes to existing cyber assets within
the electronic security perimeter do not adversely affect existing cyber security
controls.
IBM provides a comprehensive management suite that provides uniform
patch management for heterogeneous platforms, change and configuration
management, intrusion detection and analysis, authoring and enforcement of
strict identity provisioning policies, vulnerability testing for applications, con-
solidated logging, event correlation, dashboards for visualization, and escala-
tion mechanisms.
IBM’s service, incident, and prob- Incident Reporting and Response Planning (CIP-008) – This directive
lem management capabilities help calls for the IT and process-control operations to develop and maintain a
manage processes for security inci- cyber security incident response plan, documenting procedures to classify and
dents with a well-documented, escalate events and report security incidents to authorities. IBM’s service,
repeatable workflow. incident, and problem management capabilities help manage processes for
security incidents with a well-documented, repeatable workflow.
Recovery Plans for Critical Cyber Assets (CIP-009) – Standard
CIP-009 ensures that recovery plans are put in place for critical cyber assets
and that these plans follow established business continuity and disaster

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recovery techniques and practices. IBM’s asset management solutions enable
Highlights services delivery and support processes for the most dynamic IT infrastruc-
tures, ensuring business resilience and promoting faster recovery during
IBM enables a holistic approach to
failures.
grid security, providing hardware,
software, and services that build on Conclusion
an integrated security framework to IBM’s holistic approach to grid security is about not only the comprehensive
deliver comprehensive capabilities. set of capabilities listed above, but the ability to build on our common secu-
rity framework, integrating and optimizing the built-in security features of
IBM hardware, software and service offerings while providing a platform for
other ISV security products as well (see Figure 4).
Figure 4: The IBM Security Framework integrates IBM hardware, software, and services while providing a platform for other ISV security products.

15. IBM end-to-end security for smart grids
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IBM provides a comprehensive set of products and consulting, design, deploy-
ment, and managed service offerings to help comply with NERC-CIP security
requirements and other industry regulations. IBM also has the expertise to
implement the 21 steps recommended by the DOE for SCADA security.11
IBM has a proven track record in securing our nation’s most critical infra-
structures including military, banking, stock markets, and utilities. IBM is
unique in its ability to provide an unparalleled breadth and depth of technol-
ogy, services, and scalability for proven, quantifiable results.
For more information
To learn more about how IBM solutions can help your organization meet
security regulations and requirements, contact your IBM representative or
IBM Business Partner, or visit: ibm.com/security and ibm.com/energy

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Gorman, Siobhan, “Electricity Grid in U.S. www.controlsystemsroadmap.net/pdfs/
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Penetrated by Spies,” The Wall Street Journal. AMI_System_Security_Requirements-
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