$CrowdStrike (CRWD.US)$ The three-fold impact of the incident:
1. Impairment of goodwill. This mistake revealed the company's low level of operation and management. There was no product inspection or small-scale trial operation, and the large-scale version was directly published across the network.
2. Loss of operating income. It is difficult for new customers to sign and pay in the short term, and renewals for existing customers also depend on how the problem is resolved.
3. Recover claim expenses. The company mainly targets government and corporate customers, causing such a widespread shutdown. Some of these clients' legal departments are busy, and now it is estimated that they are working overtime to count losses and sort out prosecution documents. At the same time, affected individuals and cohort, such as customers of airlines and power companies, also lost their lives and property due to the failure to connect to 911. It is believed that many law firms will also be preparing to summon them to file class lawsuits.
1. Impairment of goodwill. This mistake revealed the company's low level of operation and management. There was no product inspection or small-scale trial operation, and the large-scale version was directly published across the network.
2. Loss of operating income. It is difficult for new customers to sign and pay in the short term, and renewals for existing customers also depend on how the problem is resolved.
3. Recover claim expenses. The company mainly targets government and corporate customers, causing such a widespread shutdown. Some of these clients' legal departments are busy, and now it is estimated that they are working overtime to count losses and sort out prosecution documents. At the same time, affected individuals and cohort, such as customers of airlines and power companies, also lost their lives and property due to the failure to connect to 911. It is believed that many law firms will also be preparing to summon them to file class lawsuits.
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Looking4World OP easyDay : I agree with its current and previous market leadership. The impact of the first and second factors can be mitigated through crisis management, but this incident has had a substantial impact on social operations. Large-scale compensation claims are inevitable, and this will significantly damage the company's revenue and cash flow.