December 2017
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Case – Probability vs. Vulnerability

A small investment firm completely reliant on the internet to do all of their trading thought they had planned for sufficient redundancy by securing three separate means of access to the internet. One day all three failed. The manager responsible defended himself claiming he had done all that could reasonably be expected. Two back-ups to the primary means should have been enough.

While the manager had assessed the probability of the risk occurring, no one at the firm had assessed their vulnerability if offline. It turned out that the potential losses were enormous and therefore justified extraordinary measures.

The firm was lucky. Not only were their actual losses negligible, but now the severity of risk had been very clearly identified. They took measures to reduce the risk of occurrence, as well as other steps to mitigate the potential damage should the event occur.

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