Page 75 - Cyber Defense eMagazine April 2021 Edition

The Cybersecurity Risk Posed by Your Outdated

ETRM System

Is your ETRM system leaving you exposed to hackers?
By Kent Landrum, Managing Director, Opportune LLP

nergy or commodity trading and risk management (ETRM or CTRM) systems have been gaining
Emomentum since the 1990s and continue to be at the heart of many energy companies’
information technology landscapes. In many cases, these applications have been developed and continually
enhanced over a period of decades and carry with them a legacy of outdated technologies and software
development standards. While major ETRM vendors have made improvements to their platforms in recent years to
address these limitations, relatively few customers stay on the leading edge of software releases. In addition,
most of the traditional ETRM solutions were originally developed as on-premises solutions and most clients
continue to operate them this way. These, and other factors, combine to create the potential for a significant
cybersecurity risk.

Many companies made significant investments in terms of time and money in the original implementation
of their ETRM solution. Over the years, however, these applications have become increasingly integrated
with other key enterprise systems like enterprise resource planning (ERP), data warehouses, as well as to
external parties such as exchanges/brokers and market data services further expanding cyber risk profile.
The initial capital outlay and recurring operating expense has left little appetite for additional patching or
upgrades in the absence of a key new piece of functionality demanded by the business to drive a benefits
case in spite of the fact that it’s exactly these steps that serve to reduce the potential exposure.

75 Cyber Defense eMagazine – April 2021 Edition
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