NERC CIP-013 Cyber Security Requirements Explained

A single security gap in the supply chain can be all it takes to trigger a widespread blackout. Cyber threats targeting energy infrastructure aren’t just increasing; they’re evolving, exploiting weaknesses in vendor networks that many organizations struggle to control. NERC CIP-013 was introduced to prevent these risks, but compliance is anything but straightforward. Managing third-party security, enforcing vendor accountability, and staying ahead of regulatory demands create ongoing challenges. 

This blog breaks down the key obstacles in meeting NERC CIP-013 requirements, the risks of non-compliance, and how organizations can build a stronger, more resilient supply chain security framework.

What is NERC CIP-013?

NERC CIP-013 is a cybersecurity standard that protects the bulk electric system from supply chain risks. A large network of vendors and third-party providers can create vulnerabilities that are exploited by rising cyberattacks. Without action, these risks may lead to data breaches, system failures, or power outages.

To address these threats, NERC CIP-013 requires energy organizations to adopt risk management practices, including vendor security assessments, cybersecurity contract requirements, and ongoing threat monitoring. This framework helps companies defend against supply chain attacks and improves overall energy security.

This sets the stage for understanding what NERC CIP-013 covers in more detail.

Read: NERC Compliance for Renewable Energy Operators: What Matters Most

What Does NERC CIP-013 Cover?

NERC CIP-013 covers various aspects of supply chain security to prevent cyber threats from affecting important energy infrastructure. It sets clear guidelines for evaluating vendor security, securing external access points, and ensuring that third-party software and hardware do not introduce vulnerabilities.

The key areas covered include:

• Supply Chain Cybersecurity: Manage risks in the supply chain for BES Cyber Systems to reduce cybersecurity risks to the Bulk Electric System (BES).
• Entity Responsibilities: This outlines the obligations of various entities (e.g., balancing authorities, transmission operators) to manage vendor-related risks.
• Security Controls: Requires documented plans to address vendor risks, including software integrity, remote access, incident response, and system vulnerabilities.
• Periodic Reviews: Entities must review and approve risk management plans every 15 months.
• Exemptions: Certain facilities, like those regulated by the Canadian Nuclear Safety Commission, are exempt from these requirements.

By enforcing these requirements, the standard helps utilities strengthen their supply chain security, reducing the risk of cyber threats that could impact power grid operations.

Next, it’s important to understand why managing supply chain risks is so essential in cybersecurity. 

Read: Managing Regulatory Risk and Compliance with Manufacturing Compliance Software

Why is Supply Chain Risk Management important in Cyber Security?

Supply chain risks pose significant cybersecurity challenges in the energy sector. A single vulnerability, whether from unpatched software, compromised vendor credentials, or malicious hardware, can become a gateway for cyberattacks. Threat actors often target third-party vendors to infiltrate critical infrastructure, circumventing standard security measures.

Recent attacks show the serious impacts of these issues, such as malware updates and fake hardware causing data breaches. With the energy sector’s reliance on external suppliers, securing these connections is important. NERC CIP-013 addresses this by requiring organizations to assess supplier risks, enforce security in contracts, and monitor third-party activities. 

Understanding the key requirements of NERC CIP-013 helps clarify the framework for managing these risks.

What Are the Key Requirements of NERC CIP-013?

NERC CIP-013 mandates utilities to manage cybersecurity risks in their supply chains effectively. It emphasizes reducing threats from third-party vendors to protect critical infrastructure through risk management practices, contractual obligations, and security assessments.

Supply Chain Cybersecurity Risk Management

A documented risk management plan is the foundation of compliance with NERC CIP-013. This plan should outline strategies to identify, assess, and manage cyber threats linked to third-party vendors. Key components include:

• Establishing security criteria for selecting vendors.
• Defining processes for continuous risk assessment.
• Setting clear guidelines for responding to supply chain threats.

The plan must be reviewed and updated regularly to adapt to emerging threats and regulatory changes. A static approach to security can leave gaps that malicious actors may exploit.

Vendor Risk Assessment and Due Diligence

Suppliers handling critical infrastructure systems must be evaluated based on their cyber security measures, past security incidents, and compliance history. A thorough vetting process should include:

• Reviewing security policies and protocols.
• Assessing past breaches or vulnerabilities.
• Ensuring compliance with industry standards such as NIST and ISO 27001.

A risk-based approach should be applied, prioritizing vendors with the highest level of system access. Third parties providing software, remote access, or cloud services often pose the most significant risks and require additional scrutiny.

Contractual Requirements for Cyber Security Compliance

Vendor contracts must explicitly define security obligations to enforce compliance with NERC CIP-013. These agreements should include:

• Security controls vendors must implement.
• Incident response and breach notification timelines.
• Audit rights for assessing vendor compliance.

Contracts serve as legally binding tools to hold vendors accountable and ensure that security expectations are met throughout the business relationship. Without clear terms, enforcing compliance becomes challenging.

Now, let’s look at how implementing effective controls plays a key role in compliance.

Read: Best Risk Management Software Solutions for 2025

Implementing Effective Controls for Compliance

Compliance with cybersecurity standards is vital for protecting sensitive data. Implementing appropriate controls, both preventative and detective, helps reduce risks and ensures adherence to industry regulations.

1. Preventative Controls

Preventive controls are designed to stop security incidents before they occur. By taking advanced steps to secure systems and data, organizations can minimize the likelihood of breaches. Here are some key components:

• Secure Remote Access Solutions: Use multi-factor authentication (MFA), VPNs, and secure gateways to prevent unauthorized access to important systems, especially with the increasing remote workforce.
• Configuration Management Strategies: Regularly update system configurations and enforce strict access controls to prevent misconfigurations and reduce vulnerabilities.

2. Detective Controls

While preventative controls aim to stop incidents, detective controls focus on identifying and responding to security events once they occur. These controls help organizations detect anomalies and respond quickly to decreasing damage.

• Continuous Monitoring and Anomaly Detection
  Real-time monitoring tools and anomaly detection systems identify suspicious behavior, enabling quick responses to potential threats before they escalate.

Implementing both preventative and detective controls, improving cybersecurity, ensuring compliance, and protecting valuable data.

This sets the stage for a look at how implementing effective controls plays a key role in compliance.

Read: What Are Security Controls? A Full Breakdown for Robust GRC

Challenges in NERC CIP-013 Compliance

NERC CIP-013 compliance presents challenges as it requires a structured approach to managing cybersecurity risks within the supply chain while ensuring alignment with regulatory expectations. A detailed view of this would be: 

1. Ensuring Vendor Compliance

Vendors play an important role in supply chain security, but enforcing cybersecurity policies across third-party suppliers is difficult. Many vendors operate under different security frameworks, making it challenging to verify adherence to NERC CIP-013 requirements.

2. Limited Visibility into Supplier Security Practices

Organizations often struggle to monitor vendor security beyond initial risk assessments. A lack of transparency in supplier operations increases the risk of hidden vulnerabilities that could compromise critical infrastructure.

3. Complexity in Risk Management Planning

Creating a risk management plan that meets regulatory standards requires ongoing oversight. Many organizations have difficulty assessing and reducing supplier risks at every stage of the procurement process.

4. Integration with Procurement and Contracts

Embedding NERC CIP-013 requirements into procurement workflows can slow down operations. Suppliers may not have standardized security frameworks, leading to delays in contract negotiations and compliance enforcement.

5. Adapting to Evolving Cyber Threats

Cybersecurity threats are constantly changing, requiring frequent updates to security protocols, vendor agreements, and workforce training. Without an advanced approach, organizations risk falling behind on compliance and increasing their exposure to cyberattacks.

6. Internal Coordination and Compliance Execution

Maintaining compliance requires clear communication between departments, including IT, legal, and procurement teams. Poor coordination often leads to gaps in policy enforcement, increasing the likelihood of regulatory violations and security incidents.

Despite these challenges, some tools, such as VComply, can help streamline compliance efforts. Here’s how they achieve this.

Simplify NERC CIP-013 Compliance with VComply

Ensuring NERC CIP-013 compliance can be challenging for energy and utility organizations. VComply offers solutions to simplify this process while maintaining cybersecurity and meeting regulations.

The platform ensures compliance with NERC Reliability Standards, supporting a secure energy infrastructure. Its tailored solutions for the energy and utilities sector address specific compliance needs.

Using VComply’s expertise and tools, organizations can manage compliance, reduce risks, and maintain operational excellence in the energy sector. Start your 21-day free trial today!

Final Thoughts

Securing the energy sector starts with the supply chain. NERC provides a framework, but compliance demands ongoing oversight, effective vendor management, and adaptability to new threats. Challenges include assessing supplier security, ensuring accountability, and staying audit-ready, making compliance complex but necessary. Organizations that fail to comply face financial penalties, operational disruptions, and increased cyber threats.

VComply helps energy providers simplify compliance with automated vendor assessments, real-time monitoring, and centralized risk management. The platform ensures alignment with NERC CIP-013 while reducing manual effort and strengthening security across the supply chain. Book a free demo to take control of your compliance strategy and protect your operations.