The 2020 Study on the State of Industrial Security

Larry Ponemon

Ponemon Institute is pleased to present the findings from The 2020 State of Industrial Security Study, sponsored by TÜV Rhineland. The purpose of the research is to understand cyber risks across a broad spectrum of industries and the steps organizations are taking to reduce cyber risk in the operational technology (OT) environment.

Ponemon Institute surveyed 2,258 cybersecurity practitioners in the following industries: automotive, oil and gas, energy and utilities, health and life science, industrial manufacturing and logistics and transportation. All respondents are responsible for securing or overseeing cyber risks in the OT environment and are aware of how cybersecurity threats could affect their organization.

In the context of this research, Operational Technology (OT) is the hardware and software dedicated to detecting or causing changes in physical processes through direct monitoring and/or control of physical devices. Simply put, OT is the use of computers to monitor or alter the physical state of a system, such as the control system for a power station. The term has become established to demonstrate the technological and functional differences between traditional IT systems and industrial control systems environment.

The OT environment is vulnerable to cyberattacks: 57 percent of respondents say their organizations’ security operations and/or business continuity management teams believe there will be one or more serious attacks within the OT environment. Almost half (49 percent and 48 percent of respondents) say it is difficult to mitigate cyber risks across the OT supply chain and cyber threats present a greater risk in the OT than the IT environment.

The following findings reveal the cybersecurity vulnerabilities in the OT environment.  

  • OT and IT security risk management efforts are not aligned. Sixty-three percent of respondents say OT and IT security risk management efforts are not coordinated making it difficult to achieve a strong security posture in the OT environment. The management of OT security is painful because of the lack of enabling technologies in OT networks, complexity and insufficient resources. 
  • On average, organizations had four security compromises that resulted in the loss of confidential information or disruption to OT operations. Forty-seven percent of respondents say OT technology-related cybersecurity threats have increased in the past year. The top three cybersecurity threats are phishing and social engineering, ransomware and DNS-based denial of service attacks. One-third of respondents say such exploits have resulted in the loss of OT-related intellectual property. 
  • The majority of organizations have not achieved a high degree of cybersecurity effectiveness. Less than half of respondents say they are very effective in responding to and containing a security exploit or breach (48 percent), continually monitoring the infrastructure to prioritize threats and attacks (47 percent) and pinpointing sources of attacks and mobilizing the right set of technologies and resources to remediate the attack (47 percent of respondents). 
  • To minimize OT-related risks organizations need to replace outdated and aging connected control systems in facilities, according to 61 percent of respondents. More than half (52 percent of respondents) say vulnerable software is creating risks in the OT environment. 
  • Not enough expertise and budget are often cited as reasons for not having a strong security posture in the OT environment. Organizations represented in this research are spending annually an average of $64 million on cybersecurity operations and defense (OT and IT combined). An average of 26 percent of this budget or approximately $17 million is allocated to the security of OT assets and infrastructure and an average of 17 percent or approximately $10 million is allocated specifically to OT cybersecurity. Respondents say their OT budgets are inadequate to properly execute their cybersecurity strategy. 
  • Accountability for executing a successful cybersecurity strategy. Respondents were asked who is most accountable for executing a successful cybersecurity strategy. Only 20 percent of respondents say it is the OT security leader followed by the CIO/CTO (18 percent) and the IT security leader (17 percent). 
  • Organizations are lagging behind in adopting advanced security technologies. Only 38 percent of respondents say their organizations are using automation, machine learning and artificial intelligence to monitor OT assets. The majority of companies are not integrating security and privacy by design in the engineering of OT control systems.

To read the full report, visit TUV Rheinland’s website.

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