Building Security from the Ground Up:
The True Cost of Overlooking Industrial Cybersecurity

January 22, 2025

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The Growing Threat in Industrial Operations

Data breaches are becoming increasingly costly for the industrial sector. The latest IBM Cost of a Data Breach report reveals that the average total cost of a data breach has soared to $5.56 million for industrial organizations‐an 18% increase from the previous year and 13% higher than the global average across all industries. This threat is immediate and growing: over 145,000 exposed Industrial Control Systems (ICS) exist globally, and 73% of Operational Technology (OT) professionals reported system intrusions in the past year.

Recent high-profile incidents highlight these risks:

A global aluminum producer faced $71 million in losses and endured weeks of manual operations due to a cyberattack.
A leading automotive manufacturer experienced worldwide production stoppages and a significant decline in market value after a security breach.

These escalating threats have prompted action within the industry. Frameworks like the IEC 62443 series and the NIST Cybersecurity Framework (NIST CSF) now emphasize the need for robust cybersecurity measures tailored to industrial environments.

The Evolution of Industrial Systems

The industrial landscape has transformed dramatically. Traditionally, systems were isolated and air-gapped. Today, they are highly connected networks promising enhanced efficiency and real-time monitoring. This convergence of IT and OT systems offers unprecedented operational insights and remote management capabilities. However, it also creates complex security challenges.

Legacy equipment‐often designed decades ago without cybersecurity in mind‐must now coexist with advanced technologies. For example:

Old PLCs and Outdated Protocols: Many facilities still use Programmable Logic Controllers (PLCs) and protocols that haven't been updated or secured.
Legacy Computer Operating Systems: Older systems may run unsupported operating systems, creating vulnerabilities.
Integration of New Technologies: Modern solutions like IoT devices and cloud computing require careful integration to avoid exposing weaknesses in older infrastructure.

Complicating matters, traditional IT security solutions don't always work well in OT environments. In industrial settings, system availability and safety are paramount. A simple security patch could disrupt critical operations or violate warranty agreements. Therefore, standard IT approaches need careful adaptation to fit industrial needs.

Common Security Gaps in Industrial Operations

Many security vulnerabilities in industrial environments stem from basic oversights:

Lack of Regular Maintenance: Critical systems often suffer from insufficient routine maintenance, leading to overlooked vulnerabilities and increased risk.
Default Passwords: Default credentials are left unchanged on essential devices, providing easy access for attackers.
Inadequate Network Segmentation: Effective segmentation should extend beyond separating business and plant floor systems. It must also isolate different systems, such as building management, process controls, and laboratory networks, to prevent threats from spreading.
Human Error: Insufficient training and unclear security protocols lead to inadvertent insider threats, highlighting the need for continuous employee education.

Organizations often rely on outdated security practices designed for isolated systems‐a method that doesn't reflect today's connected reality. This leaves modern infrastructures exposed to evolving threats.

These gaps persist not because solutions are unavailable, but due to misconceptions that implementing robust security measures will disrupt operations or require significant downtime.

Proactive Security: A Strategic Priority

Transitioning from reactive to proactive security is not just a technical choice-it's a strategic priority that shapes an organization's resilience. By integrating security controls during system design and upgrades, rather than as afterthoughts, companies can significantly reduce the costs associated with breach recovery.

A security-by-design approach incorporates several key principles:

Risk Ownership and Awareness: Establish clear responsibility for cybersecurity and adopt a risk-driven approach to tailor measures to specific threats.
Robust and Flexible Systems: Design architectures that are adaptable and integrate secure technology products. Implement multi-layered defenses to minimize the attack surface.
Effective Detection and Response: Build in capabilities to promptly detect and respond to threats, ensuring changes are made with security in mind.
Continuous Evaluation and Assurance: Regularly assess and update security protocols to maintain robust defenses and embed continuous assurance throughout the organization.

Implementing preventive measures typically incurs only a fraction of the costs linked to incident response, system recovery, and regulatory penalties. The return on investment is evident when considering the financial and reputational impact of a breach.

Enhancing Operational Resilience

Strengthening operational resilience begins with tackling the most critical areas of vulnerability. Consider these key priorities:

Comprehensive Asset Management: Maintain an accurate inventory of all systems and devices to effectively manage and address vulnerabilities.
Secure Remote Access and Control: Implement reliable methods for accessing the industrial controls network (ICN) securely, while restricting data flow in and out to prevent unauthorized access.
Strategic Network Segmentation: Group and isolate systems that work together, ensuring separation from those requiring minimal or no communication to contain potential threats.
Ongoing Employee Education: Provide regular training to equip employees with the knowledge and tools needed to prevent human error and enhance security awareness.
Proactive Monitoring and Maintenance: Implement real-time monitoring for threats and system health, allowing for repairs before failure, and ensuring networks, hardware, and servers operate seamlessly.

By focusing on these foundational elements, organizations can enhance security and support efficient operations without disruption.

Measuring Success in Industrial Security

Unlike traditional ROI calculations, security ROI is measured in:

Incidents Prevented: Avoiding breaches that could cost millions.
Operational Continuity Maintained: Ensuring ongoing production without disruptions.

Investing in security acts as an insurance policy that also delivers operational benefits:

Reduced Downtime: Enhanced system visibility leads to proactive maintenance and fewer disruptions.
Improved Efficiency: Proper network segmentation and monitoring streamline operations.
Better Decision-Making: Secure data collection supports informed business strategies.
Simplified Compliance: A comprehensive security program eases regulatory compliance processes.

Organizations that implement robust security measures often discover unexpected advantages beyond threat prevention, including improved visibility and efficiency.

Take the Next Step Towards Secure Operations

Understanding your current security posture is the first step toward building a resilient operation. Start by:

Identifying Critical Assets: Determine which systems and data are vital.
Documenting Network Architecture: Create a detailed map to understand connections and vulnerabilities.
Evaluating Existing Security Controls: Assess your measures against industry standards like IEC 62443 or NIST CSF.
Developing a Prioritized Roadmap: Address immediate vulnerabilities while planning for long-term resilience.

Building Security from the Ground Up: The True Cost of Overlooking Industrial Cybersecurity