Fortune 500 Companies to Incur More than $5 Billion in Losses from CrowdStrike Outage – and That’s Excluding Microsoft
The damage from the huge IT outage caused by CrowdStrike on machines running Microsoft software last week that brought air traffic to a standstill, left some hospitals unable to provide certain services, and rendered many businesses unable to operate is still being tallied, but the modeling and insurance services firm Parametrix has already come up with an estimated price tag – and it’s quite steep.
According to their calculations, the total direct financial loss that American Fortune 500 companies can expect to incur as a result of the fiasco is an incredible $5.4 billion – and that is not including Microsoft’s losses. They believe that cyber insurance will likely only cover somewhere from 10 to 20% of these losses, which would be between $540 million and $1.08 billion. They’re attributing this low coverage to the big risk retentions of many companies and the fact that a lot of them likely have low policy limits compared to the potential loss.
When averaged out across the Fortune 500 companies as a whole, the loss for each is $44 million, but it is important to keep in mind that the actual loss will depend on the industry. For example, manufacturing firms could see losses of around $6 million, while airlines could be looking at upwards of $143 million in losses.
However, it is the healthcare sector that Parametrix expects to experience the biggest direct financial hit, with companies suffering a loss of nearly $2 billion. This is followed by the banking industry with $1.149 billion in losses. The uneven manner in which the incident affects business sectors means that the companies in these sectors will account for nearly 60% of the loss despite only making up one fifth of Fortune 500 revenues.
Parametrix’s estimates are drawn from more than 54 billion points of data based on the historical performance of cloud services and directly monitoring thousands of technology businesses’ real-time service status.
On top of that, the CEO of Parametrix, Jonathan Hatzor, told the New York Post that he thinks Microsoft’s financial losses could total hundreds of millions of dollars.
Meanwhile, Fitch Ratings reported that it expects several other types of insurance beyond cyber insurance to be affected by the incident, such as business interruption insurance, technology errors and omissions policies, event cancellation and travel insurance.
CrowdStrike issues apology and fix, loses stock value
Meanwhile, the firm behind the outage, Texas-based CrowdStrike, has lost around 22 percent of its stock value since the incident. It was worth around $83 billion prior to the outage and services more than half of Fortune 1000 companies, in addition to operating throughout the world.
The company released a report this week explaining what went wrong and apologized for the drama. They are blaming it on an update pushed by CrowdStrike to its Falcon platform, a cloud-based service that is supposed to protect businesses from disruptions and cyber attacks. A bug in the update led to the simultaneous crash of 8.5 million Windows machines.
To avoid similar problems in the future, CrowdStrike has said that it will implement better testing procedures before issuing updates and use gradual rollouts to reduce the potential for simultaneous failures like those seen last week.
Although the company has already released information to help users fix impacted systems, experts maintain that getting all of the affected computers back online could take quite some time due to the need to manually weed out problematic code.
The widespread disruptions caused by the incident are a sobering reminder that many of the world’s top businesses and organizations are simply not prepared with proper contingency plans to handle the failure of crucial IT systems. This means that cyber criminals and other malicious actors are well positioned to cause chaos around the world.
FBI Director Claims Trump May NOT Have Been Hit by Bullet, Winning Gold Medal of the Gaslighting Olympics
On Thursday Alex Jones broke down the statements made by FBI Director Christopher Wray regarding the attempted assassination of Donald Trump.
Wray comes out as a Trump shooting denier.
The Trump shooting families may find his statements deplorable.
Don’t miss:
Ultimate Compilation of Media Hailing Kamala Harris as Border Czar
Alex Jones played a compilation on Thursday of Mainstream Media talking-heads praising Vice President Kamala Harris as the ‘Border Czar’ in the years preceding them flip-flopping and saying she was never the ‘Border Czar’.
Don’t miss:
France in Disarray as Arson Attacks on High-Speed Rail Routes Bring Nation to Standstill
France’s high-speed rail network was on its knees on Friday morning after being hit by a series of fires in what Prime Minister Gabriel Attal described as “acts of sabotage” on the day of the Paris Olympic Games opening ceremony.
Approximately 1 million commuters were affected by indefinite delays on what is a key date in the diary for many French city dwellers to mark the beginning of their month-long summer break as many professionals embark on the grand depart and head for the mountains and the countryside.
Rail operator SNCF confirmed many routes had been hit by a “massive attack” aimed at “paralyzing” its network with traffic on the Atlantic, North, and East lines all “very disrupted.”
It confirmed that teams were on-site carrying out diagnostics and commencing repairs to the track but that it would not be a quick fix and commuters could expect significant disruptions to last “at least through the weekend.”
Several videos posted on social media show railway stations packed with commuters with nowhere to go, sparking chaos throughout the country.
???? Arsonists have targeted France’s high-speed rail lines, bringing the country to a standstill on the day of the Paris Olympic Games opening ceremony.
French Prime Minister Gabriel Attal confirmed the “acts of sabotage” while rail company SNCF said it had been a “massive… pic.twitter.com/yP2Ux8IW5u— Remix News & Views (@RMXnews) July 26, 2024
“The consequences on the rail network are massive and serious,” wrote Prime Minister Attal on X. “I express my sincere gratitude to our firefighters who intervened on the affected sites and to the SNCF agents who will carry out the necessary work to restore the network.
“Our intelligence services and law enforcement are mobilized to find and punish the perpetrators of these criminal acts,” he added.
SNCF confirmed that routes had been hit in at least five locations across multiple lines and its diagnostics teams had found “incendiary devices” along several routes of the rail network including in Eure-et-Loir, Meurthe-et-Moselle, Meuse, Pas-de-Calais, and Yonne.
“The modus operandi, arson on installations, resembles that used by the ultra-left in the past,” one security source told Le Parisien newspaper.
No details about those suspected of being behind the attack have yet been disclosed.
Whistleblower: Secret Service Agent Stationed on the Rooftop Where Trump Assassin Opened Fire Abandoned Post Due to Heat
A whistleblower has disclosed that a Secret Service agent posted to the rooftop where former President Donald Trump’s would-be assassin left their post due to the heat.
U.S. Sen. Josh Hawley (R-MO) revealed this in a July 22 letter to Homeland Security Secretary Alejandro Mayorkas. According to the senator’s letter, the whistleblower’s claim ran contrary to the assertion by now-former Secret Service Director Kimberly Cheatle regarding the roof of the American Glass Research building. Cheatle argued that the building’s roof was sloped at its highest point and they considered it a safety factor for the agent.
“Contrary to Cheatle’s public statement about the ‘safety’ of the sloped roof, one whistleblower with direct knowledge of Secret Service planning for the event alleges that there was supposed to be a law enforcement presence on the roof that day,” wrote Hawley. Unfortunately, this lack of security allowed 20-year-old Thomas Matthew Crooks to position himself and shoot Trump.
The informant further alleged that concerns over the hot weather prompted law enforcement to station security personnel inside the building instead of the roof. This corroborated Cheatle’s earlier claim that a decision was made to secure the building from the inside.
On July 13, Crook attempted to assassinate Trump during a campaign rally in Butler, Pennsylvania, shooting him in the right ear, killing one audience member and injuring two others.
Cheatle resigns, but she’s not yet off the hook
Following the horrendous incident, Cheatle received major backlash over the lack of apparently security during the July 13 campaign rally. On July 23, 10 days after the failed assassination attempt on Trump, she resigned from her post.
“The assassination attempt on Trump is the most significant operational failure at the Secret Service in decades,” Cheatle admitted during a July 22 hearing of the House Oversight Committee. However, U.S. Rep. Nancy Mace (R-SC), a member of the committee, blasted Cheatle for being “full of s**t” during the same hearing.
After Cheatle resigned, Mace announced that she would withdraw a motion to impeach the former Secret Service director. “Now that Cheatle resigned after getting her rear handed to her yesterday and our articles to impeach her, we’re withdrawing our motion to impeach,” said the congresswoman.
“Accountability is non-negotiable. This is what we call a mic drop.”
U.S. Rep. Marjorie Taylor Greene (R-GA) also promised that Cheatle’s resignation won’t be the end of this failure, vowing that she won’t “get to slither away and enjoy retirement.”
“Cheatle and Mayorkas will face accountability for actions, including possible criminal investigations. I won’t let this go unanswered,” the congresswoman for the Peach State continued.
On the same day as Cheatle’s resignation, U.S. Rep. Josh Brecheen (R-OK) introduced a bill called the Secret Service Readiness Act (SSRA). The SSRA seeks to create “a uniform fitness standard for Secret Service special agents and uniformed division officers.”
“We believe that there ought to be one set of standards for Secret Service agents. There shouldn’t be multiple different ways you can qualify based upon your sex or your political beliefs,” Brecheen said. “If people who are being protected by [the] Secret Service – if they want the opportunity to let those who can’t meet full historic standards on their details, let them handle it. Don’t force it upon everybody else and potentially make them more vulnerable to an assassination attempt.
Head over to Trump.news for the latest stories about the former president.
VIDEO: MSNBC Falls on its Face, Women Unanimously Reject Kamala, ‘She’s an Idiot’
On the Thursday show Alex Jones discussed videos that aired on MSNBC of women rejecting Kamala Harris as the Presidential candidate.
Don’t miss: