Key Takeaways From Major Global IT Outage

By Barry Ryan, Senior Business Analyst

New Zealand experienced a widespread IT outage on Friday (19 July 2024), impacting banking, flights, public transport, and retail operations.

While not a cyberattack, the incident caused significant inconvenience and raised concerns about financial repercussions.

Key Takeaways

Operational Resilience is Paramount: The outage underscores the importance of operational resilience (emphasized in both CPS 230 and DORA) to ensure critical services can continue during disruptions. This includes robust business continuity plans (CPS 230) and effective ICT risk management strategies (DORA).

Cybersecurity and Third-Party Risk Management: Even if not a direct cyberattack, the incident highlights the need for robust cybersecurity practices and careful management of third-party risks (both CPS 230 and DORA), as vulnerabilities in external systems can have cascading effects.

Frameworks Are Essential: Both CPS 230 and DORA provide frameworks for managing operational and ICT risks.

Incident Response and Communication: The incident demonstrates the importance of clear and timely communication during disruptions. Open communication with the public and stakeholders can help manage expectations and mitigate negative impacts.