Thomas Menze, Senior Consultant

September 21st, 2018

Dmitry Feshin,

ARC Advisory Group representation Russia and CIS

“Digitalization – Risk or opportunity?»

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Программа презентации

▪ ARC старт операций в России

▪ Рынок автоматизации

▪ Промышленная кибербезопасность сегодня

▪ Промышленная кибербезопасность завтра

▪ Кибер защита: взвесить риск, вероятность и

воздействие

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ARC в России!

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The Agenda

▪ Process Automation Market

▪ Industrial Cyber Security Today

▪ Industrial Cyber Security Tomorrow

▪ Cyber Defense: Consider Risk , Probability and Impact

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EMEA Process Automation Expenditures*

HMI

Controller

Sensors, Actuators

MES

Drives:$3,8 bn

Temperature:$0,3 bn

Flow:$2,2 bn

HMI: $0,7 bn Panels:

$0,5 bn

MES:$2,9 bn

$28,6 bn

DCS:$12,8 bn

∑ 2,9 bn

∑ $1,2 bn

∑ $13,3 bn

∑ $11,2 bn

* Baseyear 2017, Source: ARC Advisory

Control Valves:$4,9 bn

Advanced ProcessControl:$0,5 bn

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EMEA Process Automation Expenditures

30%

27%

39%

5%

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EMEA Process Automation Expenditures

EMEA Ratio in 2017:

Investments in Cyber Security*

---------------------------------- =

Process Expenditures

$853 mn

-------- = 2,98%

$28,6 bn

* Cyber Security Expenditures: Endpoint, + Anomaly + Services

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Secure Plants Require a Proper StrategyTechnology Investments are Not Enough

Inventory Assets

• Endpoints (PC and Non-PC)

• Networks and Interfaces

Evaluate Risks

• Likelihood & Impact

• All kinds of attacks

Select Defenses

• Applicability of Technology

• Effectiveness for Risks of Concern

Implement

• Sequence

• Readiness

Use and Maintain

• Analyze Information

• Patches & Updates

ARC Research Shows that Implementation and Use/Maintain are the Biggest Challenges …

These steps are the Focus of ARC’s Industrial Cybersecurity Maturity Model

This is NOT an Effective Defense! This IS!

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Industrial (ICS) Cybersecurity Challenges

ICS Contex

t

People

Networks

Endpoint Devices

Security Goals &

Constraints

External

Cyber

Attacks

External

Networks

Internal Cyber

Attacks

Industrial Cybersecurity Involves a Unique Set of Endpoint Devices, Network Protocols, People, Goals, and System Management Constraints

Issue IT Cybersecurity ICS Cybersecurity

Endpoints PCs, Servers PCs, Servers, Industrial Devices

Networks TCP/IP TCP/IP, Modbus, DNP3, Etc.

People Admin People Operators, Engineers, etc.

Goals Protect Information

Safety, Availability, maybe Information

Constraints 8 to 4, Short disruptions

24x7, No disruptions

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Physical asset with sensors, actuators

Local IoT Compute and Communicate module

Smart Machine

IoT Smart Module

Major Asset Optimization via Remote Managed-Services

Secure Network

Industrial Cybersecurity Tomorrow

Plant Operations

CorporatePurchasingEngineering

XYZ Company XYZ Company XYZ Company

Enterprise

Maintenance

XYZ Company

BusinessSystems

New IoT Analytics and Applications

Private Cloud

Equipment Suppliers

Secure Connection

Software Providers

Private Cloud

Share Asset Data with 3rd

Parties

Monitor in-service Products

XYZ Company

Automation Suppliers

New Managed-services

11© ARC Advisory Group

This presentation may be not be reproduced without prior permission from ARC.

ARC ICS Cybersecurity Market Categories

Cybersecurity Management Solutions

Cybersecurity Services

Endpoint Protection

Network Security

Anomaly & Breach

Detection

ICS Cyber Assets

12© ARC Advisory Group

This presentation may be not be reproduced without prior permission from ARC.

Industrial Cyber SecurityGlobal Market Size & Growth

Category 2017 Size MUSD

2015-20 CAGR

Endpoint Protection Solutions 422.1 8.4%

Cybersecurity Services 1,060.1 17.9%

Network Security Solutions 114.5 8.5%

Anomaly & Breach Detection 85.7 12.3%

Security Management Solutions 85.9 12.6%

Total 2,939.4 12.3%

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Device

System

Device

System

Device

Plant

Plants(complex control

systems, with multiple systems)

Systems (Simple control systems with

embedded smart devices, SCADA remotes, RTUs)

Device (Smart Sensors/

Controllers, Drives, etc.)

IIoT Environment

IIoT will be a significant ICS DisrupterThree Most Common “Things” to Expect in the IIoT

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IIoT is Designed to Enable InnovationTomorrow’s Use Cases Have Yet to Be Defined

Corporate

IT System

IIoT Device

Cloud

Platform

Vendor IT

System

Vendor IT

System

Device

Vendor

SCADA

Center

Private

and/or

Public

Cloud The Wild West

No Clear Use Cases for Strategy Development …

No Natural Boundaries for Segregating ICS and IT Cybersecurity Responsibilities!

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A Future View of Industrial Control Systems Everything Connecting with Everything

Power PlantsDER

Smart Consumer Devices

Mobile Devices

Cloud Services

Enterprise SystemsSuppliers & Service Providers

Remote Intelligent Assets

In-Plant Intelligent Assets

Ubiquitous Connectivity

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ICS Cybersecurity Has to Embrace These DevelopmentsIIoT Demands a Broader View of ICS Cybersecurity

♦ Cybersecurity is “the” key concern for companies that want to (need to) begin

their IIoT journey

♦ Companies need general guidelines to ensure that they can securely roll out

new innovative business strategies

♦ While security is important, it’s naïve to think that companies will continue to

delay deployments

♦ The time has come for the ICS Cybersecurity community to acknowledge and

address these future ICS/IIoT cybersecurity challenges!

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Cyber Defense: Consider Risk , Probability and Impact

Att

ack

Lik

eli

ho

od

Non-

Targeted

Attacks by

IT-savvy

People

Targeted

Attacks by

ICS-savvy

People

General

HackersHacktivists

Cyber

CriminalsTerrorists

Unfriendly

Nations

Po

ten

tial

Imp

act

Insider Threats

Cap

ab

ilit

ies

& R

eso

urc

es

∞

0

∞

0

∞

0

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Cyber Security Management

Let us talk.

For more information, contact the author at tmenze@arcweb.com or dfeshin@arcweb.com visit our web pages at www.arcweb.com

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