Report looks at critical infrastructure vulnerabilities in the European Union

The security and economy of the European Union depends on shared critical infrastructure measures, according to a report carried out by AEA in partnership with Risk Solutions, ESR Technology and Dialogik for the European Commission. The report says that European organizations running critical infrastructure, especially in the energy sector, should be required to implement a new ICT-related risk governance framework which would enforce common standards across Europe.

AEA’s Jonathan Perks, principal author of the report, said:

“The interconnected world we live in today is increasingly reliant on ICT to support our critical infrastructure. Common European standards are essential to avert disaster and guarantee economic and social stability.”

“The domino effect of the recent banking crisis highlighted the need for reassurance to national and regional government organizations. Groups operating and regulating key national and regional infrastructures must have adequate risk governance frameworks in place, not only to protect their own business continuity but also the wider communities.”

Energy supplies

Within the EU energy supply system, transfers of energy are largely conducted through shared infrastructures. They are increasingly interconnected, complex and reliant on ICT systems for control and instrumentation of the networks as well as business management. Furthermore, as the use of ICT in both operational and business systems grows such as smart metering for electricity distribution, there is a tendency to become more reliant on common systems and commercial off-the-shelf IT technologies.

Failure of a critical energy infrastructure in one country can lead to significant disruption of supplies in one or more Member States and also cascade not only into the energy sector but through into other critical sectors. In 2006, for example, 15 million households across Europe as well as the German railway system were affected by a fault in Germany which cascaded along the network, bringing widespread disruption and infrastructure risk.

The AEA study investigated the vulnerability of critical energy infrastructures dependent on ICT systems for ensuring the security oil, gas and electricity. According to the report, due to the lack of storage and real time control required, the failure of electrical supply systems will have the most rapid and wide-ranging impact. Without electricity, all forms of transport are quickly affected as control systems (traffic lights, rail signals) and communications systems cease to operate. Water and sewage systems stop when pumps and controls are not operating and financial systems cease to function without modern communications equipment.

A common European approach is required where infrastructure in one Member State could cause significant impacts in other Member States. In this case private or national decision processes may not have adequate information or motivation to undertake investments which are more justifiable from a wider perspective.

The report, ‘Study on Risk Governance of European Critical Infrastructures in the ICT and Energy Sector’ can read here (PDF).

•Date: 11th Feb 2010 • Region: Europe •Type: Article •Topic: Operational risk
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