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Monitoring Technology Trends and Emerging Risks: Examining the CrowdStrike Incident
Technology advances and innovation both lead to significant changes in market dynamics, industry value chains, competitive strategies, and organizational structures. New risks often emerge from the complexity, speed, interconnectedness of these new advances. Companies need to continually scan the far and near horizon for emerging risks and the evolving impacts of known risks.
CrowdStrike Incident
CrowdStrike, a cloud-based cybersecurity company distributed an update to its security software on July 19, 2024 that is believed to have been faulty and to have caused issues with computers running Microsoft Windows. Approximately 8.5 million systems crashed and could not restart properly in probably the largest computer outage in history with costs estimated to be $10b+ globally and counting.
Key Points
Industry: Cybersecurity software/ Cloud Computing
Company: CrowdStrike
Date: July 19, 2024
Issue: CrowdStrike Software Update
Specific Risk: Operational Disruption - A faulty software update by CrowdStrike caused widespread technological outages
Location: Global impact, with notable disruptions in the U.S., Europe, and Asia
Industry Sectors Impacted: Airlines, media, hospitals, government offices, small businesses
Users Affected: Millions worldwide, including travelers, patients, and media consumers
Lessons Learned
Technology trends may amplify or offset certain enterprise risks
Known risks (e.g. faulty software) may have unexpected impacts
Technology advances may lead to new systemic risks
Key Questions
What critical dependencies and vulnerabilities exist related to our current cloud-based software providers?
How did we assess risks related to CrowdStrike as a third party software provider?
What is our third party risk profile and how is it being communicated to company leaders and the Board?
Do we need to update our third party risk assessment approach based lessons learned from the CrowdStrike incident?
Top Technology Trends
DelCreo continuously monitors technology trends to help our clients succeed in the rapidly evolving risk environment, including:
Generative Artificial Intelligence
Post-AI and Quantum Computing Cybersecurity
Autonomous Vehicles
Sustainable Technology
Cloud Computing
Quantum Computing
Virtual and Augmented Reality
Robotics
Blockchain
Low Code/ No Code Software
Successful enterprise risk programs continuously scan the horizon for emerging risks and how they might impact their company. The CrowdStrike outage highlights how technology trends may intersect with each other, and be triggered by a specific incident to create global, systemic issues.
References:
Here comes the wave of insurance claims for the CrowdStrike outage
A faulty software update causes havoc worldwide for airlines, hospitals and governments
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