Without solid governance, organizations cannot effectively manage compliance or mitigate risks. Strong governance establishes the foundation for successful processes, procedures, and tools that are critical for:

• Incident Management/Incident Response (IR): Handling security events swiftly and effectively.
• Governance and Accountability: Defining clear responsibilities and ownership across the organization.
• Risk and Compliance Assessments: Evaluating vulnerabilities and ensuring regulatory adherence.
• Monitoring, Auditing, and Reporting: Providing continuous oversight to detect and address issues proactively.
• Training and Awareness: Equipping teams with the knowledge and skills to maintain a security-first culture.
• Processes and Controls: Implementing technical, physical, and administrative controls to safeguard operations.

As cyber threats to OT systems continue to escalate, the Chief Information Security Officer’s (CISO) role in driving governance, risk, and compliance (GRC) initiatives becomes increasingly critical. From addressing IT/OT interdependencies to deploying advanced monitoring and response capabilities, organizations must act swiftly to secure their operations. The cost of inaction is clear: operational disruptions, financial losses, and even potential loss of life.

The evolving cyber threat landscape poses an unprecedented challenge to operational technology (OT) systems across industrial sectors. A recent Waterfall Security report highlighted a staggering 140% increase in cyberattacks targeting industrial operations in 2022, with over 150 documented incidents. The forecast states that cyberattacks could disrupt operations at 15,000 industrial sites by 2027 if this trend continues. For CISOs and GRC leaders, this alarming projection underscores the urgent need to address vulnerabilities in OT environments.

The Impact of Ransomware on IT and OT

Ransomware continues to dominate as the leading cyberattack, affecting critical IT systems and occasionally spilling over into OT environments. While most attacks in 2022 directly impacted IT systems, the physical consequences of compromised OT systems were significant. Waterfall’s report underscores this dual threat:

• Operational Shutdowns: Many organizations preemptively shut down OT systems out of caution, fearing weak OT defenses.
• Physical Consequences: Even when OT systems were not directly attacked, reliance on IT systems for operational continuity resulted in disruptions.

According to industry reports, 30% of ransomware attacks in 2022 impacted OT/ICS systems, with an estimated $7.5 billion in downtime costs attributed to these incidents. Such disruptions underscore the cascading effects of IT/OT interdependence, as even IT-targeted attacks often spill over, causing widespread operational and financial impacts.

Real-World Consequences of OT Cyberattacks

The physical and financial impacts of OT-targeted attacks extend far beyond digital disruption. The Waterfall report provides stark examples of real-world damages:

• Flight delays affect tens of thousands of travelers due to compromised aviation systems.
• Fires and equipment damage in metals and mining facilities.
• Disrupted loading/unloading operations at ports, halting global supply chains.
• Bankruptcy filings by two organizations directly impacted by OT cyberattacks.

Without robust GRC frameworks and proactive mitigation strategies, this trend could lead to catastrophic outcomes for industrial operations.

Examining Attacker Motives and Trends

While ransomware attacks often have clear financial motives, the industrial sector has become a hacktivist target. In 2022, 17% of attacks had no identifiable financial intent but were driven by ideological or political agendas. Hacktivists primarily sought to disrupt critical services, with notable incidents linked to geopolitical conflicts like the Russo-Ukrainian war. These attacks disrupted public transportation, damaged steel mills, and targeted EV charging stations.

Increased Sophistication of Threats

The democratization of advanced hacking tools, once the domain of state-sponsored actors, is troubling. Organized criminal groups now have access to sophisticated techniques and tools. The U.S. National Cybersecurity Strategy highlights this issue, warning that such capabilities are increasingly used to target critical infrastructure. This shift demands that CISOs prioritize technology investments and governance and risk management frameworks to stay ahead of attackers.

IT/OT Convergence/Alignment

The integration of IT and OT systems offers efficiency but also introduces vulnerabilities. Recent directives from the TSA, informed by the Colonial Pipeline incident, focus on mitigating risks at the IT/OT boundary:

• OT systems must maintain the necessary operational capacity, even during IT incidents.
• All OT dependencies must be eliminated or documented with compensating controls.
• Trust relationships between OT and IT domains must be severed or managed rigorously.
• OT networks should be designed for isolation during incident response.

These measures reflect a shift in regulatory expectations, emphasizing the need for CISOs and GRC leaders to adopt a holistic approach to securing interconnected environments.

Strategic Imperatives for CISOs and GRC Leaders

The exponential growth of cyber threats against OT systems necessitates immediate action.

Here are key recommendations for CISOs to address this challenge:

1. Develop a Comprehensive OT Security Strategy: Align OT security objectives with organizational business goals and regulatory requirements.
2. Conduct Rigorous Risk Assessments: Identify vulnerabilities across the IT/OT landscape and quantify potential impacts to prioritize mitigation efforts.
3. Establish an OT SOC: Build specialized capabilities to monitor, detect, and respond to OT-specific threats.
4. Invest in Resilient Architectures: Design systems to minimize dependencies and isolate critical OT networks during incidents.

Enhance Governance Frameworks: Regularly review and update policies to align with evolving threats and compliance mandates.