Global Technology Outage and Implications for Businesses

As digital systems become more interdependent, the consequences can be far-reaching as we are seeing now. Learn how Kroll can help.
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Dave Burg, Kroll's Global Head of Cyber Risk, speaks on the recent #globaltechoutage and implications for businesses with Sonali Basak and Scarlet Fu via Bloomberg TV.

Businesses experienced large-scale outage disruption worldwide due to a technical glitch during a routine content update from CrowdStrike. The issue impacted Microsoft Windows systems for many customers, rendering them inoperable until manual remediation occurs.

Dave Burg, Kroll's Global Head of Cyber Risk, speaks on the recent #globaltechoutage and implications for businesses with Sonali Basak and Scarlet Fu via Bloomberg TV.

Kroll experts are monitoring the situation, and have highlighted the following areas:

Cyber Threats

Despite the non-malicious nature of the outage, threat actors are exploiting the situation. Kroll’s Threat Intelligence analysts have already observed phishing and social engineering campaigns leveraging the disruption. Organizations should remain vigilant and consult their cybersecurity teams if they encounter suspicious activity.

Complexity and Mitigation

As digital systems interconnect, the consequences of such outages can be significant for organizations. Remote and distributed workforces exacerbate the challenge, as manual intervention may be necessary for the fix. Technical guidance has been prepared by the CrowdStrike team to support organizations impacted.

Business Continuity

Mass IT outages underscore the importance of having continuity plans. To navigate disruptions efficiently in the future, businesses can learn from this experience to enhance resilience in their operations.

Business Interruption

While it is too early to estimate the size of the disruption caused by this outage, it is already being compared to NotPetya, a global ransomware attack that took place in 2017 which caused billions in damages. Insurers are bracing for a massive influx of claims, but not all cyber or business interruption policies would cover an event like this. There could also be legal action as victims seek financial or other remuneration.

Experts from Kroll’s Cyber Threat Intelligence team are actively working with clients to address the impact and are prepared to support others onsite or virtually as needed. 

Beyond Cyber, Kroll experts from across Risk and Financial Advisory are also talking to companies in key areas including: 

  • Preparation of legal claims for damages
  • Preparation of insurance claims
  • Settlement administration from class action claims that may arise
  • Business continuity planning and review
  • Cybersecurity

 

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