The business world woke up this morning to yet another emergency. A CrowdStrike outage has caused computer shutdowns across the globe affecting businesses in every sector. More likely than not, your business is being affected by this outage, and your ability to conduct business along with it. Here are a few steps you should take to minimize the impact.
- Check your emergency planning to see what resources you have available to address the impact and minimize its effect on your business. Your IT departments are likely on top of the issue and have already begun implementing solutions and workarounds. If so, understand what they are and how soon you may return to normal. And prepare your sales and operations team to address calls from customers inquiring about any impact to your business.
- Identify how the disruption to your business might affect your supply chain. Before contacting your customers or suppliers, try to understand the nature and extent of the impact and determine if a force majeure notice is necessary. If the disruption appears to be significant or long term, consider whether a force majeure notice is appropriate.
- If a force majeure notice is necessary, review your contracts. Most contracts have force majeure provisions that will guide your next move. The provision outlines the required method and timing for providing notice. Following your force majeure provisions ensures you are protected if the impact becomes significant.
- Check your insurance policy to see if or how you are covered for such an event and how to make a claim.
Such events often arise unexpectedly and in unforeseen ways. But by proactively planning your next steps, you will be better equipped to address the impact when they occur.
For questions about this event and its impact to your business or for any other supply chain matter, please contact Homayune Ghaussi or a member of Warner’s Automotive and Supply Chain Industry Groups.
