Navigating the Aftermath of the CrowdStrike Outage: Lessons and Protections for Businesses

August 12, 2024

The recent CrowdStrike outage sent shockwaves through the business community, serving as a stark reminder of the vulnerabilities inherent in our increasingly digital operations. As a cornerstone of cybersecurity for numerous organisations, CrowdStrike’s outage had immediate and far-reaching implications for airlines, banks, hospitals and supermarkets alike, from disrupted services to potential security gaps. As businesses grapple with the fallout, it’s imperative to examine the ramifications and strategise robust defences against similar incidents in the future.

The Immediate Impact on Businesses

1. Operational Disruptions: Many businesses experienced interruptions in their daily operations. The reliance on CrowdStrike for server/endpoint security protection meant that during the outage, organisations’ servers and workstations were unavailable, they were left exposed to potential cyber threats and unable to monitor or respond to incidents effectively.
2. Security Vulnerabilities: The outage left a temporary security void, exposing companies to increased risks. Without the usual protective measures in place, the potential for data breaches and cyber-attacks heightened, causing significant anxiety among IT departments.
3. Financial Losses: For businesses, especially those highlighted in the news in such sectors as finance, healthcare, food distribution/sales and travel where data security and access to services is paramount, the financial ramifications can be severe. The costs associated with potential breaches, lost productivity, loss of income and emergency mitigation efforts can be substantial.
4. Reputation Damage: Trust is a critical asset. An inability to ensure consistent security measures and service availability can damage a company’s reputation, affecting customer confidence and long-term business relationships and as an aside CrowdStrike’s own share price dropped by 13%.

Proactive Measures for Future Protection

The CrowdStrike outage serves as a critical learning opportunity. Here are some key strategies businesses can implement to mitigate the risks and impact of similar events:

1. Diversified Cybersecurity Solutions:
• Multi-Vendor Strategy: Relying on a single vendor for all cybersecurity needs can create a single point of failure. Implementing a multi-vendor strategy ensures that if one provider experiences an outage, others can fill the gap, maintaining a protective shield.
• Layered Security: Adopt a multi-layered approach to security, integrating different solutions for various aspects such as network security, endpoint protection, and data encryption. This redundancy can minimise the impact of any single point of failure.

2. Robust Incident Response Plans:
• Develop and Test Plans: Create comprehensive incident response plans that address various outage scenarios. Regularly test these plans to ensure readiness and adaptability.
• Real-Time Monitoring and Alerts: Implement real-time monitoring systems that can alert IT teams to any disruptions instantly, enabling quicker response and mitigation efforts.

3. Backup and Recovery Solutions:
• Data Backups: Regularly back up critical data to secure, off-site locations. This ensures that, in the event of a security lapse or data corruption, recovery is swift and complete.
• System Redundancies: Invest in redundant systems and failover mechanisms that can take over in case primary systems fail, ensuring continuous operations, especially developing a “Cloud first strategy”

4. Vendor Risk Management:
• Due Diligence: Conduct thorough due diligence when selecting cybersecurity vendors. Assess their reliability, redundancy plans, and incident response capabilities.
• Service Level Agreements (SLAs): Negotiate SLAs that include uptime guarantees and clear remediation protocols in case of outages. Ensure these agreements provide adequate compensation for extended downtimes.

5. Employee Training and Awareness:
• Regular Training: Educate employees on cybersecurity best practices and protocols during outages. Awareness and preparedness can significantly reduce the risk of human error exacerbating a crisis.
• Phishing Simulations and Drills: Regular drills and phishing simulations can keep employees alert and ready to respond appropriately to security incidents.

Conclusion

The CrowdStrike outage is a sobering reminder of the fragility and interdependence of modern digital infrastructures. As businesses continue to embrace digital transformation, the imperative to build resilient, adaptable cybersecurity frameworks becomes ever more critical. By diversifying cybersecurity strategies, enhancing incident response plans, and ensuring robust backup systems, businesses can protect themselves against the uncertainties of vendor outages. This proactive stance not only safeguards operations but also fortifies trust with customers and partners, ensuring long-term stability and success in an increasingly interconnected world.

Speak to our specialists here at Dataquest and let us help you develop a robust, secure and cost-effective approach to business continuity, from “hybrid cloud” solutions, BaaS and DRaaS data and infrastructure protection and cyber security strategies to give your business the best chance of surviving or rapidly recovering from any IT outage.