At the 2012 Technologies for Security and Compliance Summit, Patrick Miller provides an overview of various industry specific related cybersecurity topics focusing on information sharing.

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 2

3. Info-Share to the Rescue!
 What does Information Sharing
really mean?
– Taking vs. Sharing
– Secrecy for secrecy’s sake
– Government doesn’t share well
(yet)
 Very useful approach, but not a
panacea
 Comes with trade-offs…
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 3

4. Information Sharing Reality
Some Pros… Some Cons…
 What works, what  Classification and
doesn’t handling, both Gov
 Benchmarking and Corporations
 Situational  Lawyers,
awareness agreements and
 Tactical threat and contracts
vulnerability analysis
 Community-sourcing  Consumers will
always outnumber
 Regulatory sharers
compliance
 Mentoring  Trust; n parties
9/1/2012
 Doesn’t scale well
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
with funding assistance from the U.S. Department of Energy 4

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
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 5

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 6

7. What EnergySec Is NOT…
 Not a lobbyist
 Not a vendor
 Not a consultant
 Not government agency
 Not a regulator
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 7

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 8

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 9

10. EnergySec Nonprofit
Umbrella
EnergySec
NESCO Advisory University Other…
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 10

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-find combination of
experience
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 11

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)
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 12

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.”
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 13

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
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 14

15. Who Is NESCO?
• IOU • Product
• Muni • Service
• Coop
Asset Owners Vendor
Govt
Academia/Research
• Non-Reg • Public
• Regulatory • Private
• Fed, State…
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 15

16. Connect & Support
Utility
Asset
Owners
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 16

17. Membership Growth
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 17

18. Member Demographics
Membership by Individual Membership by Organization
Academic Academic
2% 5%
Vendor/Other
22% Vendor/Other
35%
Govt/Regulatory
12% Asset Owner
Asset Owner 49%
64% Govt/Regulatory
11%
1,050 Individual members 363 unique organizations
Predominately Asset Owner Driven Membership Base
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 18

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 19

20. Social Media Outreach
 NESCO mailing list: 3536
 NESCO Twitter followers: 2635
 NESCO LinkedIn group members: 535
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 20

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 21

22. Engage, Equip & Empower
 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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 22

23. NESCO Is Technology
 Secure collaboration portal
– Wiki
– Working groups
– Discussion forums
– Email distribution lists
 Rapid Notification System
 Social Media
– LinkedIn, Twitter, Facebook
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 23

24. NESCO Tools
 Email distribution lists
 Secure collaboration wiki
 Secure instant messaging
 Rapid notification
mechanisms
 Resource repository
 Most technologies have non-
attribution (anonymous)
options
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 24

25. NESCO Resource Repository
 Best/common practices
 Policy, process, procedure
 Compliance approaches
 Document Templates
 Code snippets, scripts
 System configurations
 Links to useful security sites
 And more…
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 25

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
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 26

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
&…
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 27

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 The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 28

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?
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 29

30. NESCO Products
 Rapid Notification System
– Night Dragon webcast
– Duqu webcast
– Multiple TAC notices
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 30

31. NESCO Success Stories
…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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 31

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy. 32

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 33

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 34

35. NESCO Success Stories
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 35

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 36

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
9/1/2012 The National Electric Sector Cybersecurity Organization is partially funded by the US Department of Energy 37

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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 38

39. Get Connected
 www.energysec.org
 www.energysec.org/join
 www.energysec.org/tac-subscription-
service
 TAC@energysec.org
 New NESCO website soon!
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 39

40. Questions?
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
The National Electric Sector Cybersecurity Organization (NESCO) is operated by EnergySec
9/1/2012
with funding assistance from the U.S. Department of Energy 40