Cyber Security Risk Governance and Management

This report analyzes the cyber security risk governance and management in Brazilian energy utilities. It discusses frameworks, findings, and recommendations for further development.

Running head: CYBER SECURITY RISK GOVERNANCE AND MANAGEMENT
Cyber security risk governance and management
(Brazilian energy utilities)
Name of the student:
Name of the university:
Author Note

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Executive summary
The following report analyzes various frameworks, findings, assertions, methodologies and
constructs. This also includes the background of the energy sector of Brazil and processes and
elements pertain to risk management for the cyber world. Various processes and policies to be
deployed here are also evaluate in the study. Lastly, the theoretical-methodological model used here
is demonstrated here along with recommendations for further development of cyber security for the
energy sector.

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Table of Contents
Introduction:..........................................................................................................................................3
1. Discussion on synopsis highlighting the risk management framework, constructs, findings and
different assertions:................................................................................................................................3
2. Demonstrating the organization’s background, industry along with cyber spaces and cyber risks.. 3
3. Elements and processes pertaining to cyber risk governance and management:..............................4
4. Analysis of process and policy implications on the model:..............................................................5
5. Critical review of the model to understand how effectively it can align to the case and
recommendations of development:........................................................................................................5
Conclusion:............................................................................................................................................6
References:............................................................................................................................................7

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Introduction:
The Brazilian energy distribution system represents a critical aspect of the country’s
infrastructure. Here, the Brazilian energy utilities are considered regarding the security of
cyberspaces. In this study the cyber security management and governance for the Smart Grids are
analyzed.
1. Discussion on synopsis highlighting the risk management framework,
constructs, findings and different assertions:
Here, one of the primary motivators of the risk management framework is to deploy the core
structure of the activities of the distribution system of Brazil has been to prevent various sectors of
the nation. These are subjected to the deficits under power distribution. This is during the failure of
extended disorders of the climate. Further, most of the risks for the crisis of supply has been
regarding the significant power plants, specifically the hydroelectric ones and management (Sorebo
and Echols 2016).
As per the findings are concerned, the energy sector of Brazil is seen to be highly centralized.
It is regulated firmly through the state as per as governance is concerned. Here, a few instances of the
state control involve the necessities of private players to consider the concession and auction
agreements. This asserts the facts is to enter the national marketplace and price-fix the areas of
distribution and transmission (Sydney, 2019).

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2. Demonstrating the organization’s background, industry along with cyber
spaces and cyber risks.
The emergence of the threat includes cyber espionage. It has been progressively posing the
energy sector to get linked directly to the rise on prosperity, growth and security of states and
citizens. The spies of the cyber sector have been exploring new probabilities of the attacks, using the
sophisticated processes from technologies and find the latest realm of the espionage (Sun, Hahn and
Liu 2018).
Regarding the risks, the targeting ICS has been blurring the line between the physical and
cyber-attacks. The cyber attackers have been rising targeting the industrial control systems. It has
been potentially laying the groundwork for performing the physical harm to those grids. Next, there is
the risk with the cyber supply chain. Here, the risks can be considered as per the vulnerability of IT
systems (Itsecurity.weblogs.anu.edu.au, 2019).
3. Elements and processes pertaining to cyber risk governance and management:
The initial element that has been aligning to the enterprise risk management has been setting
the foundation of the programs deployed the pillars of cyber risk management of Brazilian Electricity
Regulatory Agency. The first pillar is the governance that has been involving the body of risk
decision experts and the makers of decisions. This can be done through the context of ERM
framework of the process for risk management. This is helpful to analyze, manage, exploit, monitor
and finance the risks from every sources. This is to rise the short and long term values for the
stakeholders.
This assures the engagement by the primary stakeholders like risk committee, authorizing
officials and leaders (Sun, Liu and Xie 2016). Then there is an appetite for risks that are aligned to the

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objectives and goals of the Brazilian energy sector. Next, the procedures and policies is
communicating to the expectations of risk management, risk definition along with the guidance across
the enterprise (Ecms.adelaide.edu.au, 2019).
4. Analysis of process and policy implications on the model:
From the processes of guidelines and recommendations of OECD, it has been possible to
extend on various sets of dimensions from corporate governance. This is applicable for the smart
grids of the cybersecurity governance. This includes the efficient regulatory and legal basis of the
cybersecurity governance for the smart grids (Pardini, Heinisch and Parreiras 2017). Apart from this,
the relations with the stakeholders of Smart Grids under cybersecurity governance. Then there is the
rising standard of transparency as per the principles for corporate governance of the managing
cybersecurity for Smart grid. Then, there should be equitable treatments for the stakeholders. Thus it
gets aligned to the COSCO standards. This is done through enforcing accountability, demonstrating
commitments to the competences, establishing the responsibility, authority and structure. Further, it
can be used for exercising the oversight liabilities and demonstrating commitments for ethical and
integral values.
5. Critical review of the model to understand how effectively it can align to the
case and recommendations of development:
This theoretical-methodological indicates how well that can fit Brazil’s energy sector. This
includes the stakeholders that comprise of utilities, technology providers, researchers, consumers and
policymakers. The cybersecurity governance includes the executive board and many more and is
linked to cyber security management. The smart Gods consists of reliability and operational
efficiency. Further, the critical energy infrastructure comprises of critical assets and critical

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information. It must be recommended that the energy sector should be spotting different social
engineering attempts, back up the important data and restrict the social network information. Thus the
role of stakeholders, management and organization under the control of cyber risks is understood.
They can also scope the environments of cyber security for the energy sector of Brazil for
determining the threats of cybersecurity. Further, the taxonomy and management and governance
dimensions and constructs of the cyber risks can also be seen as an important limitation can also be
determined here. The study also helps in evaluating the important risk management framework of the
enterprise under the management and governance framework of cybersecurity. Hence, it is
recommended that the knowledge can also be effectively applied to the cyber risk controls of the
energy sector. Lastly, the study is useful to develop cyber risk governance and framework of
management for the energy sector.
Conclusion:
In this above study, the suggested constructs, methodologies, assertions, findings and
frameworks are discussed under the context of Brazilian energy distribution system. The background
of the organization, industry along with the spaces and risks of the cyber world are also analyzed
here. Then the elements and processes about the risk management band governance of the cyber
world are effectively demonstrated. Next, the discussion on the process and policy deployments of the
suggested models are included. Lastly, a critical review of the model to fitting well for the
organizations is understood along with the recommendations for development.

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References:
Ecms.adelaide.edu.au. (2019). Stochastic Modelling and Operations Research | Faculty of
Engineering, Computer & Mathematical Sciences. [online] Available at:
https://ecms.adelaide.edu.au/research-impact/stochastic-modelling-and-operations-research [Accessed
27 Mar. 2019].
Itsecurity.weblogs.anu.edu.au. (2019). Phishing Email: Google - Cyber & Digital Security Blog -
ANU. [online] Available at: http://itsecurity.weblogs.anu.edu.au/ [Accessed 27 Mar. 2019].
Mylrea, M. and Gourisetti, S.N.G., 2017, September. Blockchain for smart grid resilience:
Exchanging distributed energy at speed, scale and security. In 2017 Resilience Week (RWS) (pp. 18-
23). IEEE.
Pardini, D.J., Heinisch, A.M.C. and Parreiras, F.S., 2017. Cyber security governance and
management for smart grids in brazilian energy utilities. JISTEM-Journal of Information Systems and
Technology Management, 14(3), pp.385-400.
Sorebo, G.N. and Echols, M.C., 2016. Smart grid security: an end-to-end view of security in the new
electrical grid. CRC Press.
Sun, C.C., Hahn, A. and Liu, C.C., 2018. Cyber security of a power grid: State-of-the-art.
International Journal of Electrical Power & Energy Systems, 99, pp.45-56.
Sun, C.C., Liu, C.C. and Xie, J., 2016. Cyber-physical system security of a power grid: State-of-the-
art. Electronics, 5(3), p.40.

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Sydney, T. (2019). Faculty of Arts and Social Sciences - Intranet - The University of Sydney. [online]
Intranet.sydney.edu.au. Available at: https://intranet.sydney.edu.au/arts.html [Accessed 27 Mar.
2019].
Tuballa, M.L. and Abundo, M.L., 2016. A review of the development of Smart Grid technologies.
Renewable and Sustainable Energy Reviews, 59, pp.710-725.