Magazine article Mortgage Banking

Report: CEOs Must Be Prepared for Massive Internet Disruption

Magazine article Mortgage Banking

Report: CEOs Must Be Prepared for Massive Internet Disruption

Article excerpt

Business leaders must recognize the growing dependence of their business functions on the Internet, as well as the alarming risks posed to businesses and the U.S. economy as a whole in the event of a major Internet disruption. That was the conclusion of a report by the Washington, D.C.-based Business Roundtable.

The Roundtable report--Growing Business Dependence on the Internet: New Risks Require CEO Action--concludes that an Internet disruption would be detrimental not only to businesses, public institutions and citizens, but also the economy, estimating a global economic cost of approximately $250 billion.

"A prolonged and widespread Internet disruption will affect critical business operations at nearly every U.S. company, with ripple effects that will extend throughout the economy, disrupting vital financial and government operations," stated the report. "To address this new reality, businesses must assess their vulnerabilities and develop robust incident-response and continuity plans."

The report noted that an Internet disruption would not only affect nearly every U.S. company directly or indirectly, but the efforts to respond will create stress points that will hinder recovery. Furthermore, the report suggests there is a lack of awareness by business leaders regarding their reliance on the Internet, thus increasing vulnerability in the case of an interruption, malfunction or disruption.

Citing figures from The World Economic Forum, Geneva, Switzerland, the report estimates a 10 percent to 20 percent probability that a breakdown of critical information infrastructure will occur within the next 10 years. …

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