Power outages are fastest growing operational risk for business
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Vida portfolio solutions on J.P. Morgan Markets
J.P. Morgan’s Vida portfolio solutions are being applied across financing and portfolio management, reflecting a shift towards more scalable, integrated investment infrastructure
Top 10 operational risks for 2026
Industry shares intel on biggest collective threats, as well as remedies and loss gauges
Top 10 op risks 2026: Cyber stays top, AI risk enters at fifth
Third-party and outsourcing risk climbs to third; fraud and fincrime edge out geopolitical risk
Deutsche Bank CRO’s year of living dangerously
Marcus Chromik explains his approach to geopolitical risk, operational resilience and AI adoption
EU can handle energy price pressure – it’s been here before
Reforms made after Russia’s invasion of Ukraine have made region more resilient to energy shocks, officials say
Rising reliance on internal auditors spooks regulators and industry
Risk managers warn US is substituting supervisors with auditors; could compromise independence
What futures and options say about the cost of war
Spot prices reveal major disruption, futures indicate this will pass, options imply ongoing instability
CME-FICC cross-netting terms fuel clashes
Hedge funds worried by CCP powers to suspend arrangement; clearing members say it’s standard practice