Any unplanned business interruption causes direct damage, such as the inability to sell and invoice products, or indirect damage, such as loss of customer confidence and damage to reputation. To avoid such situations, companies rely on business continuity plans that assess the risks and foresee all necessary actions. From ransomware attacks to disasters such as floods and fires, risks are diverse and ever-present for organizations of all sizes, regardless of industry.
Such incidents especially affect organizations that rely exclusively on on-premises IT infrastructure and do not have business continuity plans that provide for cloud data backup operations or even the possibility of running hosted business applications. In order to raise the alarm, we have compiled a list of the most frequent incidents that affect the operational continuity plans of companies in Romania:
1. Ransomware
In February 2024, the National Cyber Security Directorate (DNSC) announced a large-scale cyber attack with the Backmydata-Phobos ransomware virus. The attack targeted Romanian Soft Company (RSC), which owns the Hippocrates computer system. The data of 26 hospitals across the country, which rely on this IT platform, was encrypted and 79 facilities were disconnected from the internet. There was no ransom demand or downloading of personal data in this case. Similar attacks also targeted the Romanian healthcare system in 2019 and 2021.
Ransomware is a malicious software designed to block access to a computer system, network or files until a fee is paid to the attacker. Ransomware usually encrypts the victim’s files or locks the system, making it inaccessible. Payment is demanded in cryptocurrency to decrypt data or restore access. Ransomware attacks can target individuals, businesses, government agencies or other organizations. These attacks can result in the permanent loss of critical data as well as significant financial losses. In addition to paying the ransom demand, losses can also be caused by business interruption or possible penalties for violating data protection regulations. A business continuity plan that does not include firm anti-ransomware measures is incomplete from the outset.
2. Technical malfunctions
At the hardware level, problems can occur with hard disks, memory modules, processors, power supplies or other components due to manufacturing defects, wear and tear, overheating or electrical problems. At the software level, the most common causes of failures are bugs, programming errors, compatibility problems or vulnerabilities in software code. Problems can also occur at the network level (faulty routers or switches), through data corruption (including cyber-attacks), but also due to human error (misconfiguration, failure to follow procedures).
At the app level, malfunctions can cause operational chaos for customers. In March 2024, a large number of Romanians who carried out transactions at ING Bank’s POS machines noticed that the amounts they had been charged were doubled. This type of problem can result in lost customers and damage to the company’s image, in addition to the time wasted by employees in rectifying the situation.
3. Power outage
Constantin Ioanițescu, ex-director of ELCEN (Electrocentrale București), claimed that the widespread interruption of electricity in Romania in 1977 caused billions of dollars of damage, about 4-5 times more than the damage caused by the earthquake that occurred in the same year, according to Profit.ro. Today, when dependence on electricity and technology is incomparably higher, the losses are commensurate.
Power outages or brownouts do more than just disrupt normal electricity-dependent operations. The impact can be huge, especially for organizations that rely on on-premises IT infrastructure. Sudden surges or fluctuations in voltage can damage sensitive electronic equipment, including servers, network devices, computers and other hardware, requiring costly repairs or replacements. Communication systems and office productivity tools can also be affected, leading to productivity disruptions and losses, customer dissatisfaction and, in turn, financial losses. For example, in 2017, Raiffeisen Bank experienced a power outage that caused bank cards to be inoperable for several hours.
4. Floods
Floods can cause significant damage to buildings, IT infrastructure, equipment and inventory, meaning costly repairs or replacements for businesses. Floods can damage warehouses or distribution centers and impede the movement of goods and raw materials, causing delays in production, distribution and delivery of products and services. Machinery, vehicles, valuable goods or documents may be lost due to flooding. In addition, flooding can increase the risk of accidents, injuries or diseases transmitted by water among employees, customers and the public. In addition, organizations may also incur higher insurance rates or face difficulties in obtaining insurance in the future, particularly if they are located in areas at high risk of flooding or have experienced repeated flood-related losses.
As a example to understand exactly what the real impact of floods can be, a recently published statistic shows that in Alba county, floods have caused more than 108 million lei worth of damage. Of these, only one municipality, Ighiu, recorded losses of 74 million lei.
5. Fires
Whether they are caused by natural disasters or human activities, fires can also cause significant damage to buildings, structures, equipment, inventory and other assets, leading to financial losses and business interruption. Fires can destroy electronical devices, servers and data storage systems, resulting in the loss of critical data, documents, records and intellectual property, with potentially long-term impact on business continuity and competitiveness. Electrical systems, HVAC systems (heating, ventilation and air conditioning), plumbing and communications networks can also be damaged or destroyed by fire, requiring costly repair or replacement. Businesses affected by fires may suffer financial losses associated with property damage, business interruption, loss of revenue, liability claims or legal expenses.
According to the Inspectorate for Emergency Situations (IGSU), Romania experienced 18 fires per day in 2023. ISU Neamt provided information about the largest fire that occurred last year in the county. It spread due to the wind, eventually affecting seven neighboring companies. The fire destroyed not only production means and raw materials but also the office area and IT components.
A continuity plan costs less than future losses coverage
These unpredictable incidents are difficult to manage without an operational continuity plan, which is essential for business stability. It enables organizations to mitigate risk, reduce downtime, protect their assets, preserve customer trust and reputation, prioritize employees’ safety, and gain a competitive advantage in the marketplace. M247 offers solutions that cover all vulnerable areas, from Internet connectivity and communications to backup, cloud and colocation services.
We can help you to choose the right solution, contact us at office@m247.com.
