Power outages are fastest growing operational risk for business
Daily news headlines
Recent research suggests that power outages were the fastest growing cause of business disruption in 2006.
LONDON - Recent research, conducted by SunGard Availability Services, shows that power-related disruptions increased by more than 350% between 2005 and 2006, and accounted for 26% of customer disaster declarations (invocations), up from 7% in 2005.
Hardware failure, however, remains the leading cause of business disruption, covering almost half (48%) of SunGard’s customer invocations. Flooding and infrastructure-related invocations, such as air-conditioning faults and uninterrupted power supply (UPS) loss, were the third largest cause of business disruption.
“Computers are getting smaller but are much more powerful, and are increasingly drawing on firms’ infrastructure and local electricity suppliers for more and more power,” said Peter Coles, service delivery director at SunGard Availability Services. “As the demand for computing grows, the demand for power grows accordingly, and many companies are finding their existing buildings struggling to cope with this upsurge in power requirements. Listed or older office buildings cannot easily accommodate a ‘retrofit’ to suit current power needs, so careful consideration needs to be given to the limits of the infrastructure when planning for business availability. One option is to consider purpose-built data centre environments, such as those available from SunGard, which are built to deliver the optimum in resilience and uptime.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Beware war exclusions in cyber insurance, risk managers told
Risk Live: Experts say policy wording is tightening up following rise in ransomware attacks
Top 10 operational risks for 2024
The biggest op risks for the year ahead, as chosen by senior industry practitioners
Top 10 op risks: AI fears drive cyber risk to record high
External fraud re-enters top 10; change management now a top five concern
Harsh judgements: why Stateside lenders are upping the Q-factor
As CRE stalls, qualitative adjustments are forming a larger part of US banks’ credit risk allowances
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
Bank credit risk: how well do you know your counterparties?
As financial markets evolve, evaluating the complex credit risk exposures of non-bank counterparties is crucial for effective risk management, says Quantifi’s Dmitry Pugachevsky
EU index managers face funding risks as US moves to T+1
Rotations from European to US assets will need prefunding due to slower EU settlement
CCPs show support for daily stress margin tools
Anti-procyclicality measure floated by HKEX official sparks interest from rivals including Nasdaq
Most read
- As FCMs dwindle, regulators fear systemic risk
- Options market still searching for cause of the Vix plunge
- Top 10 op risks: AI fears drive cyber risk to record high