Last Friday, a glitch in the tech firm led to a global disruption impacting cross-sector activities. Hospitals, health clinics, and banks were impacted; airlines grounded their planes; broadcasting firms were unable to broadcast (Sky News went off the air); emergency numbers such as 911 in the United States were unavailable; and MDA experienced several troubles in Israel.
This incident had a significant impact in the United States, Australia, and Europe. Critical infrastructure and many corporate operations were brought to a halt. In Israel, citizens instantly linked the incident to warfare, namely the UAV that arrived from Yemen and exploded in Tel Aviv, presuming that Iran was attacking in the cyber dimension.
What exactly happened?
CrowdStrike, an American firm based in Texas that provides a cybersecurity protection system deployed in several companies across the world, announced on Friday morning that there was a glitch with the most recent version of their system given to customers. The issue caused Microsoft's operating system, Windows, not to load, resulting in a blue screen. As a result, any organisational systems that were installed and based on that operating system failed to load. In other words, the organisation had been paralysed.
But the trouble didn't end there. During the company's repair actions, hackers "jumped on the bandwagon," impersonating as staff members and giving instructions that essentially involved installing malicious code into the company and erasing its databases. This was the second part of the incident.
Importance of risk management
Risk management is an organisational discipline. Within risk management processes, the organisation finds out and maps the threat and vulnerability portfolio in its activities, while also developing effective responses and controls to threats and risks. Threats can be "internal," such as an employee's human error, embezzlement, or a technical failure in a computer or server. Threats can also arise "externally" to the organisation, such as consumer or supplier fraud, a cyberattack, geopolitical threats in general, particularly war, or a pandemic, fire, or earthquake.
It appears that the world has become far more global and technological than humans like to imagine or believe. And, certainly, a keyboard error made by one individual in one organisation can have global consequences, affecting all of our daily lives. This is the fact, and we should recognise it as soon as possible and start preparing for future incidents through systematic risk management methods.
