American Oil and Gas Reporter - August 2023 - 67

SpecialReport: Cybersecurity
Many data loss prevention programs use
machine learning to detect files that
probably contain sensitive data, such as
credit card numbers, and restrict where
those files can go. For example, they can
prohibit a distracted employee or hacker
from emailing the file to someone outside
the network, uploading it to an insecure
cloud or copying it to a flash
drive. The goal is to keep sensitive data
in a secure place.
Ideally, companies should use intrusion
detection and prevention software
to monitor networks for suspicious activity.
In addition to logging that activity,
which can simplify forensics and
recovery after an incident, these tools
help keep bad actors from moving
throughout a network.
Protecting networks also means monitoring
the devices used to access them.
Today, these include not only desktops
but also tablets, smart phones, employees'
home computers and an expanding
array of smart sensors. To keep these devices
from becoming weak links, organizations
rely on endpoint security or
mobile device management solutions.
Endpoint security solutions may be
classified as endpoint detection and response,
managed detection and response,
or extended detection and response.
Whatever they are called, they allow organizations
to better monitor all workstations,
servers and mobile devices to
detect, investigate, prevent, respond and
remediate malicious activity.
As these tools' capabilities, user interfaces
and artificial intelligence engines
improve, it is becoming easier for
security teams to notice and address
concerns quickly. Nevertheless, security
is a 24/7/365 job. Whether an organization
builds an internal security operations
center or works with an externally
managed security services provider, end
point security solutions have become
vital to mitigating potential incidents
and loss.
Redundant Backups
Cyberthreats are not the only concerns
that can lead to a business interruption. A
company cannot operate if a power outage
leaves it without a working network
or a natural disaster destroys the only
server containing its data. With that reality
in mind, companies should consider
replicating data across multiple data centers,
partnering with several Internet service
providers and connecting systems to
uninterruptible power supplies or backup
generators.
Redundant backup copies are also important.
For security, backups should be
off site, offline or in a dedicated cloud
service. Ideally, backups should take
place daily or at least weekly. It's preferable
for the copy to be immutable, meaning
it cannot be changed. Even then,
backups should be tested regularly for
successful restoration and integrity to ensure
they are free of malware.
Companies can improve their resilience
to cyber and mundane disruptions
by developing business continuity
and incident response plans. To test these
plans, conduct tabletop exercises that include
everyone from the IT department
to the C-suite.
Cybersecurity is a never-ending journey.
Bad actors constantly are looking for
weak systems or opportunities to exploit.
However, the insurance industry's data
shows that companies that follow cybersecurity
best practices can greatly reduce
their risks, a reality that has slowed onceastronomical
growth in cybersecurity insurance
premiums.
Insurance for oil and gas companies
may not soften as quickly as it has for
other sectors. Underwriters remain concerned
about supply chain and critical infrastructure
risks, as well as expanding
regulations and regulatory actions.
Underwriters also worry about the
growing popularity of cloud technology,
which many companies are adopting to
help dispersed teams collaborate and
gain flexible, efficient and scalable infrastructure
at a reduced cost. Cloud
software is secure, but because it contains
huge amounts of data, it has become
a very tempting target for bad
actors. If they outsmart cloud providers'
security teams, it may lead to catastrophic
losses from systemic events.
This possibility has underwriters considering
restrictive coverage for cloud
software outages.
Such an outage could devastate an
upstream firm's operations and finances,
but there is so much more at
stake. Oil and gas power the United
States and the world, enabling everything
from transportation and manufacturing
to telecoms and heating and air
conditioning. Cybercriminals know that
disrupting energy production will have
ripple effects throughout the economy.
Thus, energy companies need to be vigilant
with their cybersecurity and protect
their IT and OT assets.
❒
MARK
ALVAREZ
Mark Alvarez is a vice president and cyber risk specialist at Stephens Insurance. His
insurance career began in 2007 with a large global agency, where he developed an interest in
cyber risk insurance. Alvarez has worked in both the brokerage and underwriting sides of the
insurance industry. Before joining Stephens Insurance in 2021, he was a cyber and technology
errors and omissions underwriter for one of the first organizations to underwrite cybersecurity

American Oil and Gas Reporter - August 2023

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