:max_bytes(150000):strip_icc()/GettyImages-2162028333-6f4086c91f8647c289d6d982e650bc72.jpg "CrowdStrike Tech Outage Could Cost Fortune 500 Companies $5.4 Billion")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2162028333-6f4086c91f8647c289d6d982e650bc72.jpg)
Key Takeaways
- Fortune 500 companies, excluding Microsoft, are expected to suffer $5.4 billion in losses due to the global tech outage cause by CrowdStrike, according to analysis from Parametrix, a cloud monitoring and modeling provider and insurer.
- Parametrix estimates the average loss per Fortune 500 company to be $43.64 million, while some industries like airlines could see higher losses.
- The largest direct financial loss could be felt by the healthcare and banking sectors, the report said.
Fortune 500 companies, excluding Microsoft (MSFT), could lose an estimated $5.4 billion due to theglobal tech outage caused by CrowdStrike (CRWD), according to Parametrix, a cloud monitoring and modeling provider and insurer.
Parametrix estimated the average loss per Fortune 500 company to be $43.64 million. When examining loss per company in affected industries, losses ranged from less than $6 million for manufacturing companies to over $143 million for airlines.
The outage affected organizations and businesses across the globe Friday, including airlines, banks, media outlets, government agencies, and others.
The “largest direct financial loss will be suffered by Fortune 500 companies in the healthcare sector ($1.938 billion), followed by banking ($1.149 billion),” Parametrix reported, adding that these sectors account for only 20% of the Fortune 500’s revenue, but likely bore 57% of the losses.
Analysis of the outages “shows not only the possible extent of a systemic cyber loss event but also its boundaries,” Parametrix CEO Jonatan Hatzor said.
CrowdStrike shares declined another 4% Wednesday, contributing to the stock’s double-digit decline since last Thursday’s close, before the outage on Friday.