The Importance of Risk Readiness for Utilities

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The term “risk readiness” may seem cliché, but it is critically important because it represents the very essence of emergency preparedness.  Unfortunately, some organizations lag in this area, which is problematic because the interconnectedness of the energy infrastructure with the infrastructure of other sectors can lead to a cascading effect when disaster strikes.

What It Means for Utilities to Improve Risk Readiness

Obviously, if we?re talking about the potential for creating cascading effects, the largest proportion of risk relates to cybersecurity, so from a prioritization perspective, that should be at the top of the list.  According to this Power Magazine article, there are 4 key methods that utilities can employ to improve their risk readiness:

First, it is critical to implement a multi-front battle against cyber threats.  Per the 2023 X-Force Threat Intelligence Index, the energy industry is the fourth-highest industry sector to be targeted by cyberattacks.  But these risks go beyond large-scale takedowns of power plants and refineries – they also include threats to internet of things (IoT) devices like smart meters, thermostats, and even employee devices like laptops, tablets, and cellphones.  Simply put, there are hundreds if not thousands of backdoor entry points for hackers to exploit so a multi-front plan is an absolute must.

Second, utility companies need to hire people that have the expertise to mitigate the risks, especially cyber risks.  While it is true that digital tools can help, usage of these tools needs to be directed by knowledgeable and talented cyber risk leaders to make them truly effective.

Third, focus on the dynamics of regulatory compliance.  Regulatory requirements can change frequently, and many utilities are likely relying on legacy systems that were implemented before modern cybersecurity regulations existed.  The recommendation is to hire more experts, especially those that are knowledgeable about regulatory compliance, and implement digital tools to monitor, track, and implement regulatory controls.

Finally, the article suggests investing in artificial intelligence to bolster predictive capabilities and identify security breaches in real time.

Following these recommendations makes sense.  There’s no doubt about it, optimizing risk readiness is critical for utilities.