Impacts Archives

The Cost of the Erith Fire and how much has Ocado Learnt from Previous Incidents?

It is rare to get detailed information on the costs of incidents; so the recent financial update from Ocado Retail, covering the period around the fire at their Erith fulfilment centre, is particularly interesting. Comments by the company’s senior management, also raise a question mark over how much they have learnt from previous fires. A …

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Has BCM protected shareholder value in the COVID-19 outbreak?

An article by Cambridge Risk Solutions, published this week in Continuity Central, looks at whether there is any evidence that firms that follow good practice in business continuity management (BCM) have fared better in the current Covid-19 pandemic. Specifically it looks at the impact on the share prices of companies in the FTSE 100 from …

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New Study Looks at the Cost of Security Breaches

A recent academic study by Daniele Bianchi and Onur Kemal Tosun analysed the market reaction to 41 deliberate (ie criminal) security breaches that occurred in large US firms between 2004 and 2016. The authors found that firms experiencing such a security breach experienced a loss in value of between 1 and 1.5% over a period …

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New Research Looks at the Cost of Reputational Crises

Building on her previous studies over the last twenty years, Deborah Pretty of Pentland Analytics has recently published new research looking at “Reputational Risk in the Cyber Age”. The study analyses a sample of 125 reputational risk events over the last ten years including: The Samsung Galaxy Note7 recall; The Volkswagen emissions scandal; and Cyber-attacks …

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Update on Delta Airlines IT Outage

We blogged last month about the IT outage at Delta Airlines which led to the suspension of flights across the US, Japan and Europe. Although the actual IT outage only lasted for 5 hours, disruption to flights persisted for several days and, in a briefing to investors on Wednesday, Delta estimated the cost of the …

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TalkTalk – A Postscript to the Data Breach

There was an interesting postscript today to the story of the data breach at TalkTalk last October. You will recall that the at first it was feared that personal details of all 4 million of the company’s customers could have been compromised, although the breach ultimately turned out to be much less serious. The company …

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Business Impact of Japanese Earthquakes Becoming Clearer

The human impact of the earthquakes on Thursday and Saturday in Japan’s Kumamoto Region was immediately obvious with at least 41 people dead, homes destroyed and public services severely disrupted. It is only now though, as we move into the next working week, that the business impact begins to become apparent. Sony, Honda and Toyota …

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Counting the Cost of the Twitter Outage

We have frequently commented on the high costs to businesses, most commonly banks, of IT glitches; but what is the impact when your business is entirely web-based? Yesterday’s disruption to Twitter, which left some users locked out and others receiving only an intermittent service, provides a fascinating case study. It also provided some much-needed humour …

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