
It is not a question of if you are ready, but when. This year is critical for utilities as NERC CIP regulations require that utilities be “Compliant” by July 1, 2009 and “Auditably Compliant” by July 1, 2010. The pressure is on for utilities to implement effective cyber-security solutions or potentially face fines and other penalties depending on their “level of non-compliance” under the compliance enforcement program (CEP). The sense of urgency is heightened by ongoing cost pressures, resource constraints and the short CIP timelines.
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What can electrical power providers do to ensure readiness for a NERC CIP audit managed by their respective Regional entities under the Compliance and Monitoring Enforcement Program?
Implementing a log and event management solution can help utilities to address the nine sections of the NERC CIP standard and automate resource intensive processes required for compliance. LogRhythm, the leader in log and event management, has extensive experience in helping organizations improve their overall security and compliance posture while reducing overall costs. LogRhythm’s NERC CIP Compliance Package provides out-of-the box assistance in addressing numerous NERC CIP requirements. LogRhythm includes compliance packages for other regulations that utilities may be subject to as well such as: Sarbanes-Oxley (SOX), the Federal Information Security Management Act (FISMA) and Payment Card Industry Data Security Standard (PCI-DSS). In addition to auditing and reporting, several sections in the NERC CIP requirements, as well as other regulations, call for monitoring and alerting to be in place to be compliant.
Larry Amerman, Security Administrator at Enbridge Energy, a global energy transportation and distribution company, chose LogRhythm for its ease of use, powerful investigation tools and its integrated log management and security information management in a single solution. “Our organization needed to have log collection and management along with real-time monitoring with correlation. We looked for a solution that was designed to do both really well and LogRhythm was the standout choice” said Amerman. “We use the product’s out-of-the-box reports and alerts to automate compliance and to bolster our security program."
FERC, NERC and Critical Cyber Assts
The North American Electric Reliability Corporation (NERC) is a nonprofit corporation designed to “ensure that the bulk electric system in North America is reliable, adequate and secure.” As the federally designated Electric Reliability Organization (ERO) in North America, NERC maintains comprehensive reliability standards that define requirements for planning and operating the collective bulk power system. Among these are the Critical Infrastructure Protection (CIP) Cyber Security Standards, which are intended to ensure the protection of the Critical Cyber Assets that control or effect the reliability of North America’s bulk electric systems.
In 2006, the Federal Energy Regulatory Commission (FERC) approved the Security and Reliability Standards proposed by NERC, making the CIP Cyber Security Standards mandatory and enforceable across all users, owners and operators of the bulk-power system. After going into effect in June 2006, initial compliance auditing began in June 2007.
The collection, management, and analysis of log data are integral to meeting many NERC CIP requirements. IT environments consist of heterogeneous devices, systems, and applications all reporting log data. Millions of individual log entries can be generated daily if not hourly. The task of assembling this information can be overwhelming in itself. The additional requirements of analyzing and reporting on log data render manual processes or homegrown remedies inadequate and costly.

LogRhythm Solution – NERC CIP Compliance Package
Log collection, archive, and recovery are fully automated across the entire IT infrastructure. LogRhythm automatically performs the first level of log analysis. Log data is categorized, identified, and normalized for easy analysis and reporting. LogRhythm’s powerful alerting capability automatically identifies the most critical issues and notifies relevant personnel.
LogRhythm’s NERC CIP Compliance Package provides out-of-the box assistance in addressing numerous NERC CIP requirements. As part of the NERC CIP Compliance Package, the enterprise assets are categorized according to NERC CIP CIP-002-1 Critical Cyber Asset Identification standards: Electronic Security Perimeter, Incident Reporting and Planning, Critical Cyber Assets, Malware Systems, Vulnerability Detection, Disposal Logs and Patch Compliance.

The table below explains how LogRhythm and the NERC CIP Compliance Package address the nine sections of the standard.
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NERC CIP Section and Purpose
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LogRhythm Compliance Support
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CIP-001-1: Sabotage Reporting |
LogRhythm identifies attacks in real time by monitoring, classifying, and alarming on events that support the reporting process of CIP-001-1 in requirements 2 and 3. |
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CIP-002-1: Critical Cyber Asset Identification |
LogRhythm provides support for identifying systems and their roles that might have otherwise been not accounted for, especially covering requirements 1.2.6 and 1.2.7 that provide support for critical assets. |
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CIP-003-1: Security Management Controls |
LogRhythm is a supporting tool for Security Management decision making. The assigned Compliance Monitor will be able to validate controls using LogRhythm. |
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CIP-004-1: Personnel & Training |
LogRhythm augments personnel training by providing additional “eyes” on organization activities. The 24x7 monitoring provided by LogRhythm covers areas of awareness that normally personnel cannot. |
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CIP-005-1: Electronic Security Perimeter(s) |
LogRhythm’s primary purpose is to provide direct support to monitoring the ESP and Critical Cyber Assets, organizational access controls and other security controls. LogRhythm also supports identification of configuration changes for ESP devices, which augments the strict security configuration requirements. Cyber Vulnerability Assessments are enhanced by LogRhythm’s ability to collect detected vulnerabilities during regular functioning activities, providing even greater protection for the organization than a spot-check assessment could. |
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CIP-006-1 and 1a: Physical Security |
LogRhythm augments existing physical access controls by monitoring logs generated by electronic access systems. |
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CIP-007-1: Systems Security Management |
LogRhythm provides oversight for almost all requirements of the Systems Security Management standard. LogRhythm addresses CIP-007-1 directly in order to meet many of the challenges of implementing an effective NERC CIP compliant solution. |
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CIP-008-1: Incident Reporting and Response Planning |
LogRhythm provides a centralized system for collecting, reporting and alarming on intrusion detection events from both network and host security systems. Centralization of intrusion reporting and response should be an objective for an effective IRR plan. |
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CIP-009-1: Recovery Plans for Critical Cyber Assets |
LogRhythm provides an early warning system for system failures that could provide an increase in response time, diagnostic abilities, reduction of downtime and alarm on failure abilities to augment disaster recovery. |
Get the facts about NERC CIP Compliance
LogRhythm has created a White paper that contains a compliance reference chart with the specific CIP requirements matched with recommended steps to ensure compliance. The white paper outlines the out of the box reports and alerts that can automate compliance to the following sections of the standard:
CIP-003-1 – Cyber Security – Security Management controls
CIP-005-1 – Cyber Security – Electronic Security Perimeter(s)
CIP-006-1 – Cyber Security – Physical Security of Critical Cyber Assets
CIP-007-1 – Cyber Security – Systems Security Management
CIP-008-1 – Cyber Security – Incident Reporting and Response Planning
Please go to this link to download a copy of the whitepaper: www.logrhythm.com/getthefacts.