E

4 ALBERT EMBANKMENT
LONDON SE1 7SR
Telephone: +44 (0)20 7735 7611 Fax: +44 (0)20 7587 3210

MSC-FAL.1/Circ.3
5 July 2017

GUIDELINES ON MARITIME CYBER RISK MANAGEMENT

1 The Facilitation Committee, at its forty-first session (4 to 7 April 2017), and the
Maritime Safety Committee, at its ninety-eighth session (7 to 16 June 2017), having considered
the urgent need to raise awareness on cyber risk threats and vulnerabilities, approved the
Guidelines on maritime cyber risk management, as set out in the annex.

2 The Guidelines provide high-level recommendations on maritime cyber risk

management to safeguard shipping from current and emerging cyberthreats and
vulnerabilities. The Guidelines also include functional elements that support effective cyber
risk management.

3 Member Governments are invited to bring the contents of this circular to the attention
of all stakeholders concerned.

4 This circular supersedes the interim guidelines contained in MSC.1/Circ.1526.

***

I:\CIRC\MSC-FAL\1\MSC-FAL 1-Circ 3.docx

 MSC-FAL.1/Circ.3
Annex, page 1

ANNEX

GUIDELINES ON MARITIME CYBER RISK MANAGEMENT

1 INTRODUCTION

1.1 These Guidelines provide high-level recommendations for maritime cyber risk
management. For the purpose of these Guidelines, maritime cyber risk refers to a measure of
the extent to which a technology asset is threatened by a potential circumstance or event,
which may result in shipping-related operational, safety or security failures as a consequence
of information or systems being corrupted, lost or compromised.

1.2 Stakeholders should take the necessary steps to safeguard shipping from current and
emerging threats and vulnerabilities related to digitization, integration and automation of
processes and systems in shipping.

1.3 For details and guidance related to the development and implementation of specific
risk management processes, users of these Guidelines should refer to specific Member
Governments' and Flag Administrations' requirements, as well as relevant international and
industry standards and best practices.

1.4 Risk management is fundamental to safe and secure shipping operations. Risk
management has traditionally been focused on operations in the physical domain, but greater
reliance on digitization, integration, automation and network-based systems has created an
increasing need for cyber risk management in the shipping industry.

1.5 Predicated on the goal of supporting safe and secure shipping, which is operationally
resilient to cyber risks, these Guidelines provide recommendations that can be incorporated
into existing risk management processes. In this regard, the Guidelines are complementary to
the safety and security management practices established by this Organization.

2 GENERAL

2.1 Background

2.1.1 Cybertechnologies have become essential to the operation and management of

numerous systems critical to the safety and security of shipping and protection of the marine
environment. In some cases, these systems are to comply with international standards and
Flag Administration requirements. However, the vulnerabilities created by accessing,
interconnecting or networking these systems can lead to cyber risks which should be
addressed. Vulnerable systems could include, but are not limited to:

.1 Bridge systems;
.2 Cargo handling and management systems;
.3 Propulsion and machinery management and power control systems;
.4 Access control systems;
.5 Passenger servicing and management systems;
.6 Passenger facing public networks;
.7 Administrative and crew welfare systems; and
.8 Communication systems.

I:\CIRC\MSC-FAL\1\MSC-FAL 1-Circ 3.docx

MSC-FAL.1/Circ.3
Annex, page 2

2.1.2 The distinction between information technology and operational technology systems
should be considered. Information technology systems may be thought of as focusing on the
use of data as information. Operational technology systems may be thought of as focusing on
the use of data to control or monitor physical processes. Furthermore, the protection of
information and data exchange within these systems should also be considered.

2.1.3 While these technologies and systems provide significant efficiency gains for the
maritime industry, they also present risks to critical systems and processes linked to the
operation of systems integral to shipping. These risks may result from vulnerabilities arising
from inadequate operation, integration, maintenance and design of cyber-related systems, and
from intentional and unintentional cyberthreats.

2.1.4 Threats are presented by malicious actions (e.g. hacking or introduction of malware)
or the unintended consequences of benign actions (e.g. software maintenance or user
permissions). In general, these actions expose vulnerabilities (e.g. outdated software or
ineffective firewalls) or exploit a vulnerability in operational or information technology. Effective
cyber risk management should consider both kinds of threat.

2.1.5 Vulnerabilities can result from inadequacies in design, integration and/or maintenance
of systems, as well as lapses in cyberdiscipline. In general, where vulnerabilities in operational
and/or information technology are exposed or exploited, either directly (e.g. weak passwords
leading to unauthorized access) or indirectly (e.g. the absence of network segregation), there
can be implications for security and the confidentiality, integrity and availability of information.
Additionally, when operational and/or information technology vulnerabilities are exposed or
exploited, there can be implications for safety, particularly where critical systems (e.g. bridge
navigation or main propulsion systems) are compromised.

2.1.6 Effective cyber risk management should also consider safety and security impacts
resulting from the exposure or exploitation of vulnerabilities in information technology systems.
This could result from inappropriate connection to operational technology systems or from
procedural lapses by operational personnel or third parties, which may compromise these
systems (e.g. inappropriate use of removable media such as a memory stick).

2.1.7 Further information regarding vulnerabilities and threats can be found in the additional
guidance and standards referenced in section 4.

2.1.8 These rapidly changing technologies and threats make it difficult to address these
risks only through technical standards. As such, these Guidelines recommend a risk
management approach to cyber risks that is resilient and evolves as a natural extension of
existing safety and security management practices.

2.1.9 In considering potential sources of threats and vulnerabilities and associated risk
mitigation strategies, a number of potential control options for cyber risk management should
also be taken into consideration, including amongst others, management, operational or
procedural, and technical controls.

2.2 Application

2.2.1 These Guidelines are primarily intended for all organizations in the shipping industry,
and are designed to encourage safety and security management practices in the cyberdomain.

I:\CIRC\MSC-FAL\1\MSC-FAL 1-Circ 3.docx

 MSC-FAL.1/Circ.3
Annex, page 3

2.2.2 Recognizing that no two organizations in the shipping industry are the same, these
Guidelines are expressed in broad terms in order to have a widespread application. Ships with
limited cyber-related systems may find a simple application of these Guidelines to be sufficient;
however, ships with complex cyber-related systems may require a greater level of care and
should seek additional resources through reputable industry and Government partners.

2.2.3 These Guidelines are recommendatory.

3 ELEMENTS OF CYBER RISK MANAGEMENT

3.1 For the purpose of these Guidelines, cyber risk management means the process of
identifying, analysing, assessing, and communicating a cyber-related risk and accepting,
avoiding, transferring, or mitigating it to an acceptable level, considering costs and benefits of
actions taken to stakeholders.

3.2 The goal of maritime cyber risk management is to support safe and secure shipping,
which is operationally resilient to cyber risks.

3.3 Effective cyber risk management should start at the senior management level. Senior
management should embed a culture of cyber risk awareness into all levels of an organization
and ensure a holistic and flexible cyber risk management regime that is in continuous operation
and constantly evaluated through effective feedback mechanisms.

3.4 One accepted approach to achieve the above is to comprehensively assess and
compare an organization's current, and desired, cyber risk management postures. Such a
comparison may reveal gaps that can be addressed to achieve risk management objectives
through a prioritized cyber risk management plan. This risk-based approach will enable an
organization to best apply its resources in the most effective manner.

3.5 These Guidelines present the functional elements that support effective cyber risk
management. These functional elements are not sequential – all should be concurrent and
continuous in practice and should be incorporated appropriately in a risk management
framework:

.1 Identify: Define personnel roles and responsibilities for cyber risk

management and identify the systems, assets, data and capabilities that,
when disrupted, pose risks to ship operations.

.2 Protect: Implement risk control processes and measures, and contingency

planning to protect against a cyber-event and ensure continuity of shipping
operations.

.3 Detect: Develop and implement activities necessary to detect a cyber-event

in a timely manner.

.4 Respond: Develop and implement activities and plans to provide resilience

and to restore systems necessary for shipping operations or services
impaired due to a cyber-event.

.5 Recover: Identify measures to back-up and restore cyber systems necessary

for shipping operations impacted by a cyber-event.

I:\CIRC\MSC-FAL\1\MSC-FAL 1-Circ 3.docx

MSC-FAL.1/Circ.3
Annex, page 4

3.6 These functional elements encompass the activities and desired outcomes of
effective cyber risk management across critical systems affecting maritime operations and
information exchange, and constitute an ongoing process with effective feedback mechanisms.

3.7 Effective cyber risk management should ensure an appropriate level of awareness of
cyber risks at all levels of an organization. The level of awareness and preparedness should
be appropriate to roles and responsibilities in the cyber risk management system.

4 BEST PRACTICES FOR IMPLEMENTATION OF CYBER RISK MANAGEMENT

4.1 The approach to cyber risk management described herein provides a foundation for
better understanding and managing cyber risks, thus enabling a risk management approach
to address cyberthreats and vulnerabilities. For detailed guidance on cyber risk management,
users of these Guidelines should also refer to Member Governments' and Flag Administrations'
requirements, as well as relevant international and industry standards and best practices.

4.2 Additional guidance and standards may include, but are not limited to:1

.1 The Guidelines on Cyber Security Onboard Ships produced and supported

by BIMCO, CLIA, ICS, INTERCARGO, INTERTANKO, OCIMF and IUMI.

.2 ISO/IEC 27001 standard on Information technology – Security techniques –

Information security management systems – Requirements. Published jointly
by the International Organization for Standardization (ISO) and the
International Electrotechnical Commission (IEC).

.3 United States National Institute of Standards and Technology's Framework

for Improving Critical Infrastructure Cybersecurity (the NIST Framework).

4.3 Reference should be made to the most current version of any guidance or standards
utilized.

___________

1 The additional guidance and standards are listed as a non-exhaustive reference to further detailed
information for users of these Guidelines. The referenced guidance and standards have not been issued by
the Organization and their use remains at the discretion of individual users of these Guidelines.

I:\CIRC\MSC-FAL\1\MSC-FAL 1-Circ 3.docx