Energy and Infrastructure Boards, Cybersecurity Is Now Critical Infrastructure

Power grids. Pipelines. Water treatment plants. These aren’t just assets they’re the veins and arteries of entire nations. And they’ve never been more vulnerable. Cybersecurity in the energy and infrastructure sector is no longer a technical issue managed quietly by the IT department—it is a board-level, fiduciary, and national security concern. For boards charged with keeping the lights on, the fuel flowing, and the water clean, failure to treat cybersecurity as critical infrastructure is an abdication of modern governance.

From ransomware attacks that shut down pipelines to espionage campaigns infiltrating utility networks, the risks are no longer theoretical. They are frequent, targeted, and potentially catastrophic.

When Cyber Risk Becomes Physical Risk

In 2021, the Colonial Pipeline ransomware attack disrupted fuel supplies across the U.S. East Coast, leading to panic buying and temporary closures of airports and fuel stations. That single cyber incident affected millions of people and exposed the fragility of digitally dependent infrastructure. This was not a one-off incident, it was a warning.

For board members, this presents a new imperative: understanding that cyber threats are not confined to data loss or financial penalties. In this sector, they translate into tangible disruptions of public services. A successful intrusion into a power plant can plunge cities into darkness. A hacked water system can expose entire communities to health risks. In this context, cybersecurity is public safety.

Nation-State Threats Are No Longer the Exception

State-sponsored cyber actors, backed by nations such as Russia, China, Iran, and North Korea, have increasingly set their sights on critical infrastructure. Groups like Russia’s Sandworm or China’s APT10 conduct long-term reconnaissance, looking for weaknesses in the digital backbone of utilities. These attackers are patient, persistent, and well-resourced.

Unlike financially motivated cybercrime, these campaigns are geopolitical. Their goal is to destabilize economies, undermine trust, and gain leverage. Board members must view such threats through the same lens they apply to economic and physical risks. These are not “what-ifs”—they are part of today’s geopolitical reality.

Legacy Systems: The Hidden Achilles’ Heel

Most energy and utility companies still operate using legacy SCADA (Supervisory Control and Data Acquisition) or ICS (Industrial Control Systems) environments. These systems were never designed with cybersecurity in mind and yet they now sit exposed in digitally connected ecosystems.

Outdated protocols, hardcoded passwords, flat networks, and unpatched vulnerabilities are all invitations for attack. Boards must ensure that management is not simply layering security on top of outdated systems but actively modernizing critical infrastructure components.

Ask yourself: Are we patching vulnerabilities or replacing them entirely? Are our OT (operational technology) systems segmented from IT environments? How long would it take to isolate a threat within our network?

Regulations Are Now Pointing Directly at the Board

Cyber governance is no longer a “best practice”—it’s a requirement. In the U.S., bodies such as FERC (Federal Energy Regulatory Commission) and NERC (North American Electric Reliability Corporation) have enforced Critical Infrastructure Protection (CIP) standards that require demonstrable oversight from boards and executives. Failure to comply can result not just in fines, but in personal liability.

Meanwhile, global frameworks like the EU’s NIS2 Directive or the UK’s NCSC guidelines are setting similar expectations. These rules mandate incident reporting timelines, designate board-level responsibility for cyber oversight, and require risk assessments across the digital supply chain.

Cybersecurity is no longer a domain boards can afford to misunderstand. Like SOX redefined financial accountability after Enron, these regulations will define digital accountability after Colonial and SolarWinds.

Insurance, Investors, and Procurement Now Scrutinize Cyber Maturity

It’s not just regulators. Insurers are re-evaluating how they underwrite risk in this sector. Companies with low cyber maturity may face sky-high premiums—or find themselves uninsurable.

Investors are asking tougher questions as well. Environmental, Social, and Governance (ESG) ratings increasingly include cyber resilience. Government clients and municipalities—especially in defense-related projects—now include cyber maturity assessments in procurement evaluations.

Boards that cannot demonstrate robust cybersecurity governance are exposing their companies to more than just breaches—they’re risking access to capital, contracts, and reputational trust.

Culture Starts in the Boardroom

It’s not enough to invest in tools or hire a capable CISO. Cyber resilience begins with governance. Boards must actively shape a cyber-conscious culture throughout the organization. This includes:

• Regularly reviewing security posture and breach readiness.

• Including cyber risk in enterprise risk assessments.

• Requiring tabletop exercises and incident simulations.

• Requesting cybersecurity updates in quarterly board meetings.

• Inviting cybersecurity leaders into strategic planning.

Employees take their cues from leadership. When cybersecurity is discussed only after an incident, it signals it’s not a priority. But when the board makes cyber literacy and investment a constant, proactive conversation, it shifts the organizational mindset.

What Every Board Member Should Be Asking

As a director or trustee of an energy or infrastructure entity, the following questions must be on your radar:

• What’s our downtime tolerance in case of a major ransomware event?

• Are our critical systems segmented, redundant, and protected?

• Have we undergone a third-party cyber audit in the last 12 months?

• Who owns cyber reporting at the executive level, and what’s their visibility in the boardroom?

• Are we confident our vendors and subcontractors are secure?

If these questions cannot be answered clearly and confidently, the organization may already be at risk.

Cybersecurity Is Now Critical Infrastructure

Ultimately, the role of the board in the energy and infrastructure sector is to ensure continuity of service, trust of the public, and stewardship of essential national assets. Cybersecurity is now integral to that mission. It’s no longer “extra.” It’s not “someone else’s job.” It belongs squarely in the boardroom.

Just as safety, compliance, and environmental responsibility became board-level issues in previous decades, cybersecurity now defines what it means to govern responsibly in a connected world. The board that doesn’t prioritize digital resilience isn’t just unprepared—it’s negligent.