On June 26, 2025, the Federal Energy Regulatory Commission (FERC) approved NERC CIP-015-1, a transformative standard that mandates Internal Network Security Monitoring (INSM) within Electronic Security Perimeters (ESPs) of high or medium impact Bulk Electric System (BES) Cyber Systems (BCS) with External Routable Connectivity (ERC). This pivotal regulation shifts cybersecurity from a perimeter-focused model to a visibility-first approach—prioritizing the detection of network anomalies and lateral movement within trusted operational technology (OT) environments.
More than a compliance mandate, CIP-015-1 presents a strategic opportunity to operationalize OT monitoring as a core input to Cyber Risk Quantification and Management. By instrumenting the OT network to monitor east-west traffic, organizations gain real-time insight into the behaviors, anomalies, and vulnerabilities that shape their cyber exposure. Platforms like DeRISKTM by DeNexus leverage this OT telemetry to run probabilistic attack simulations, modeling how threats propagate across networks and estimating their potential financial and operational impact.
DeRISKTM can also generate NERC CIP compliance reports based on cybersecurity maturity, enabling utilities to fulfill some of their regulatory obligations with structured, evidence-based documentation. This capability is particularly valuable as FERC and regional entities increase expectations around data-driven compliance validation.
Unlike traditional top-down assessments built on static controls inventories and expert opinion, this data-driven approach replaces subjectivity with evidence-based data. The result is a dynamic, defensible, and repeatable Cyber Risk Quantification framework—one that not only supports Cyber Risk Mitigation (prioritizing vulnerabilities with highest cost impact) but also Cyber Risk Transfer, such as cyber insurance strategies backed by actuarially sound models.
CIP-015-1 also unlocks high-resolution bottom-up Cyber Risk Aggregation, enabling critical infrastructure owners to evaluate how each substation, plant, or facility contributes to enterprise risk. DeRISKTM ’s portfolio modeling capabilities make it possible to simulate how a localized breach can escalate into a systemic, cross-site event, informing investment strategies and resilience planning at the asset, site, and fleet levels.
The implications are wide-reaching. CIP-015-1 applies to utilities and infrastructure operators across North America, impacting electric transmission, generation, distribution, and industrial control environments from Canada to the U.S. and Mexico. Industries spanning energy, water, manufacturing, and transportation will feel the ripple effect as regulators signal that internal OT visibility is no longer optional—it’s foundational.
For risk, compliance, and security leaders, the message is clear: CIP-015-1 isn’t just about checking boxes. It’s about leveraging OT data to build smarter, more resilient infrastructure through rigorous, real-world risk modeling—and using tools like DeRISKTM to support both Cyber Risk Quantification and CIP reporting in one unified platform.
For more on how DeRISK enables NERC CIP-015-1 compliance and OT cyber risk quantification, visit DeNexus.com.
If you want to learn more, get in touch with our team, or understand how the above is put to use to quantify and manage cyber risks at 250+ industrial sites monitored by DeNexus, you can contact us at https://www.denexus.io/contact.