1. EnergySec & National Electric Cyber Security Organization (NESCO) Overview 2012 Technologies for Security and Compliance Summit The Anfield Group August 1-2 2012 Barton Creek Resort Austin, TX

2. New, New Security Model Nation State quality adversaries Fear the auditor more than attacker Regulatory avalanche forecast Constant compromise Ecosystem of organizations Information sharing is holy grail 2 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 3. Info-Share to the Rescue! What does Information Sharing really mean? Taking vs. Sharing Secrecy for secrecys sake Government doesnt share well (yet) Very useful approach, but not a panacea Comes with trade-offs 3 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 4. Information Sharing Reality Some Pros What works, what doesnt Benchmarking Situational awareness Tactical threat and vulnerability analysis Community-sourcing Regulatory compliance Mentoring 4 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy Some Cons Classification and handling, both Gov and Corporations Lawyers, agreements and contracts Consumers will always outnumber sharers Trust; n parties Doesnt scale well 5. Who is EnergySec? Unique, non-profit, independent, public- private information sharing organization Borne from Energy Sector Bottom-up vs. top-down TRUSTED By the industry, for the industry Non-profit 501(c)(3) Independent, private 10+ years of information sharing experience 5 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 6. EnergySec Background 10.2001: Precursor to E-Sec NW formed 7.2004: E-Sec NW formalized and founded Asset owner/operator ONLY; all volunteer 1.2008: SANS Information Sharing Award 12.2008: Incorporated E-Sec NW as EnergySec 10.2009: 501(c)(3) nonprofit determination 4.2010: EnergySec applied for NESCO DOE FOA 7.2010: EnergySec awarded NESCO FOA 10.2010: NESCO became operational 6 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. 7. What EnergySec Is NOT Not a lobbyist Not a vendor Not a consultant Not government agency Not a regulator 7 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 8. EnergySec Staff Extensive applied sector experience Many years employment at asset owners Operations, security, audit, Sr mgmt, OT, IT Regional Entity leadership Independent consulting; big firms and boutiques Built several successful companies EnergySec founders, Info-sharing pioneers Certified, trusted, highly connected, dedicated 8 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. 9. EnergySec Programs NESCO: Information Sharing & Best Practices Advisory Service EnergySec University Education/Workforce Development LIGHTS: Security in a box (turnkey) Independent board Partnership with ICS-ISAC 9 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 10. EnergySec Nonprofit Umbrella EnergySec NESCO Advisory University Other 10 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 11. EnergySec Advisory Customized agenda; facilitated discussion Examine current and horizon energy sector specific cyber security legislation Explore methods to meet compliance obligations and enhance security posture Present threat, vulnerability and impact landscape to executives and staff Highest concentration of advisors with unique and hard-to-nd combination of experience 11 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 12. EnergySec University Professional/workforce development path Internal expertise as instructors Open faculty roster from best and brightest Courses in all IT/OT security-related disciplines Internship matchmaking coming soon Working closely with National Board of Information Security Examiners (NBISE) 12 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 13. What Is NESCO? R. 3183 ...the Secretary shall establish an independent national energy sector cyber security organization... Department Of Energy issued FOA on March 31, 2010 Purpose is to establish a National Electric Sector Cyber Security Organization that has the knowledge, capabilities, and experience to protect the electric grid and enhance integration of smart grid technologies that are adequately protected against cyber attacks. This organization will serve as a focal point to bring together domestic and international experts, developers, and users who will assess and test the security of novel technology, architectures, and applications. 13 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 14. NESCO Objectives Organize, lead and implement a public-private partnership Focus cybersecurity research and development priorities Identify and disseminate security best practices Organize the collection, analysis and dissemination of infrastructure vulnerabilities and threats Work cooperatively with the DOE and other Federal Agencies Enhance cybersecurity of the bulk power grid and electric infrastructure 14 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 15. Who Is NESCO? 15 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. Public Private Non-Reg Regulatory Fed, State Product Service IOU Muni Coop Asset Owners Vendor Academia/Research Govt 16. Connect & Support 16 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy Utility Asset Owners 17. Membership Growth 17 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 18. Member Demographics 18 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy Academic 5% Asset Owner 49% Govt/Regulatory 11% Vendor/Other 35% Membership by Organization Academic 2% Asset Owner 64% Govt/Regulatory 12% Vendor/Other 22% Membership by Individual 363 unique organizations1,050 Individual members Predominately Asset Owner Driven Membership Base 19. Membership Overview NESCO Members of Sept 30 2011 (1 year) 788 NESCO members 278 unique organizations NESCO Members as of July 12 2012: 1050 individuals 363 unique organizations Note: This represents a nearly 50% annual growth rate 19 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 20. Social Media Outreach NESCO mailing list: 3536 NESCO Twitter followers: 2635 NESCO LinkedIn group members: 535 20 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 21. Direct Outreach 3 Town Hall meetings 19 Voice of the Industry (VOI) meetings 82 TAC notices; 149 follow up threads 71 presentations/panels 94 event participation 37 blog mentions 43 interviews and article citations 21 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 22. Engage, Equip & Empower 22 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy Sharing requires trust Trust is built on relationships Our approach Bringing people together Flexible technology options and solutions to extend and enhance relationships Organic growth; birds of a feather 23. NESCO Is Technology Secure collaboration portal Wiki Working groups Discussion forums Email distribution lists Rapid Notification System Social Media LinkedIn, Twitter, Facebook 23 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. 24. NESCO Tools 24 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy Email distribution lists Secure collaboration wiki Secure instant messaging Rapid notification mechanisms Resource repository Most technologies have non- attribution (anonymous) options 25. NESCO Resource Repository 25 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy Best/common practices Policy, process, procedure Compliance approaches Document Templates Code snippets, scripts System configurations Links to useful security sites And more 26. NESCO Tactical Analysis Center Supports ES-ISAC and ICS-CERT Open & private source intelligence Asset owner volunteer handler SMEs with virtual dashboards Rapid, community-sourced analysis Secure communications Rapid notification system Daily diaries, trending Quarterly & annual reports 26 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 27. ES-ISAC, ICS-CERT and TAC An analogy triage and long term care Basic differences of the TAC Operated by an independent non-profit org Not associated with a federal regulatory agency DOE partner is non-regulatory Funding expires in 2014, only seed money provided Funding model involves cost-share, so industry bears cost throughout entire effort Electric sector specific Provides feeds, when requested to NERC & DHS & 27 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 28. ES-ISAC, ICS-CERT and TAC Basic differences of the TAC Covers all entities, not just Registered Entities under the NERC Functional Model Not just Bulk Electric w/ CA and CCA Includes smart grid, distribution, QF generation NESCO staff work alongside industry handlers RNS has direct access to security staff Volunteer reporting structure, not mandatory Private position offers unique vendor relationships Anonymized pass through for bi-directional sharing 28 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 29. NESCO Products Whitepapers DNS Exfiltration Security Logging Best Practices and Capability Maturity Models Public Key Infrastructure, Automated Metering Infrastructure and Industrial Control Systems DOE Electric Sector Cybersecurity Capability Maturity Model (ES-C2M2) coming soon! What else would you like to see? 29 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. 30. NESCO Products Rapid Notification System Night Dragon webcast Duqu webcast Multiple TAC notices 30 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 31. NESCO Success Stories 31 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. is fantastic that [DOE produces] a document that deals with a subject so technical and that it makes available to the public. http://goo.gl/0xiWp 32. NESCO Success Stories Spearphishing notices from asset owner shared with DHS for action Result: DHS ICS-CERT advisory issued Accounts from service contractor posted to Internet reviewed for asset owner data Result: Direct contact warning to specific parties 32 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy. 33. NESCO Success Stories Exposed control systems posted on Internet matched to asset owners Result: Direct contact warning to specific parties EnergySec spearphishing attempt Result: Cross-organization comparison with general industry advisory; IOCs published 33 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 34. NESCO Success Stories Industry and [some] Regional Entities seeking to modify process for Technical Feasibility Exceptions to maximize security benefit Result: NESCO provided independent and impartial discussion forum, webinar and industry feedback loop for proposed change to process 34 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 35. NESCO Success Stories 35 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 36. NESCO Funding Model Department of Energy FOA Cooperative agreement Cost-share is ~40%, ramps over life of 3.5 year seed window At end of seed window, NESCO is fully funded by industry Supported by underwriters and TAC subscriptions 36 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 37. NESCO Summary Focused on building trust through relationships to further security collaboration and sharing Flexible technology facilitates and catalyzes information/resource sharing efforts Supports existing successful programs Security voice of the electric sector 37 7/31/201 3 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 38. Get Connected EnergySec Summit: September 25-28 NESCO Town Hall CISO Forum Policy and Technical Tracks EnergySec University Courses NERC CIP Training: Las Vegas 10/25 NERC CIP Training: Sacramento 12/4 Cybersecurity for Operations: Nashville 11/7 NESCO Voice of the Industry (VOI) Meetings 38 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 39. Get Connected www.energysec.org www.energysec.org/join www.energysec.org/tac-subscription- service TAC@energysec.org New NESCO website soon! 39 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy 40. Questions? 40 7/31/201 3 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec with funding assistance from the U.S. Department of Energy Patrick C Miller Principal Investigator, National Electric Sector Cybersecurity Organization President & CEO, EnergySec patrick.miller@energysec.org 503.446.1212 (desk) @patrickcmiller (twitter) www.energysec.org