What happens to society when critical infrastructure fails? Imagine the effect of a large-scale failure in the power network on telecommunications, healthcare and the water supply. How would the emergency services cope?
Read More:
http://www.genre.com/knowledge/blog/?c=n
2. Urbanization is a trend
that is taking place around the world.
As the size and
population of our cities
swell, so does the demand
for energy, water, food,
waste management,
communications and
other critical services.
7. Without it, all of the following would be disrupted:
Utilities and
supplies
Public sector transport and
traffic
communications business and
finance
Water
Food
Waste
management
Fuel
Schools
Hospitals
Prisons
Road
Rail
Water
Air
Telephone
Internet
Press and
broadcasting
Manufacturing
Stock exchange
Payment and
banking services
8. Utilities and
supplies
Public sector transport and
traffic
communications business and
finance
Without it, all of the following would be disrupted:
Depending on how long it lasts and
how many people are affected,
the consequences of a blackout can be
considerable.
13. Natural catastrophes
(hurricanes, earthquake, floods, snow)
Aging infrastructure and
lack of maintenance
Human Error
(construction, design or operation)
Space Weather
(solar storms, solar eclipses)
14. Widespread power outages are not uncommon:
Duration People Affected Cause
Several Hours
Italy
Sep 2003 57m
Overloading of
lines from power
system fault
11 hours
Indonesia
Aug 2005 100m
Transmission
line failure
Several Hours
Germany, France, Italy,
Spain, Austria, Belgium
Nov 2006 10m-15m
Overloaded
network after
manual switch-off
2 weeks
China
Jan/Feb 2008 4.6m Winter storms
Several Hours
India
July 2012 670m Human error
16. Image: Youtube
of the world’s international
communications are carried by
approximately 250 undersea cables?
Damage from a ship’s anchor,
fishing net, undersea earthquake
or even a shark can cut off
communications to an entire country.
Over
Did you know?
99%
17. Services to 14 countries
were disrupted for a total of 18 days.
In 2008 an anchor cut
three of four cables
that lie off the coast
of Egypt. These carry
90% of the Internet and
telecommunications
traffic between Europe
and the Middle East.
For example:
18. Increasing demand for energy
Due to urbanization, economic wealth and
modern society’s reliance on technology.
Interdependence of critical services
Today’s services are so intertwined there are
usually ripple effects.
Aging infrastructure
Incentives to invest in more resilient systems
are insufficient.
Privatization of services
Profitability is often prioritized over reliability.
Reasons
we are more
vulnerable to
blackouts
19. Closure of conventional power plants
Though there are clear benefits, renewable
energy sources can be more volatile.
Climate change
Extreme weather events, such as heat waves and
heavy rain, are on the rise.
Epidemics/Pandemics
The spread of pathogens across international
borders may be the price of globalization.
Cyber attacks
Operating systems are under threat from
increasingly sophisticated cyber crime.
Reasons
we are more
vulnerable to
blackouts
21. Identify critical
processes
and operations.
Involve technical
experts and insurers
in the development
of risk mitigation
strategies.
Invest in more
resilient infrastructures
and establish
frameworks for their
governance.
Conduct
disaster crisis and
business continuity
planning.
22. Many insurers are not
consequences of blackouts.
providing cover against the
aware they are already
Are you?
23. Terms and conditions vary country to country,
but the following are examples of common exposures:
Property
Life/Health
Liability
Marine
Credit
Aviation
Spoiled stock, clean up
expenses, costs to repair or
replace damaged machinery
Increased morbidity/mortality
due to interruption of
public health services
Failure to meet supply
dates or delivery
of inferior products
Supply chain
interruption
Insolvency due to
business interruption
Cancelled flights,
crashes due to loss of
communication
24. Soft market conditions are
causing an increase in exposure
as insurers accept broader policy
terms to remain competitive.
aware
25. Soft market conditions are
causing an increase in exposure
as insurers accept broader policy
terms to remain competitive.
New non-physical damage
policies (covering financial
losses from the likes of
volcanic ash, cyber attacks
and weather fluctuations) have
huge accumulation potential –
approach with caution!
aware