Senior executives are linked to their company’s resilience; so much so, that a majority, 54 percent admit to suffering from stress-related illnesses and/or damage to their mental well-being in the aftermath of cyber attacks, IT outages or network failures.
Research by business recovery services company Sungard Availability Services (Sungard AS) found 49 percent of CEOs have suffered from stress-related illnesses and/or damage to their mental well-being, rising to 62 percent amongst CIOs/CTOs. One of the contributing factors to the stress-related illnesses and damage to business leaders’ mental well-being is the backlash that they are receiving, online and in person. Almost half of respondents (45 percent) state that they experience abuse online or verbally, and in some cases even physical threats. A fifth (20 percent) say that this criticism extends to their family and friends who also receive abuse verbally and/or physically.
Kathy Schneider, Chief Marketing Officer at Sungard AS says: “This research has identified a new Resilience Imperative, the personal impact on the individuals involved. The lost business, costs to repair what is broken, and the reputational damage have not only a business impact, but a personal impact. Many business leaders are suffering from stress-related illness or damage to their mental wellbeing when disruption happens. Boards within organisations must take a long hard look at their company’s approach to resilience today.”
Companies know the financial and reputational impact of crises, and this research has suggested the negative personal impact it can have on a firm’s leadership. Over one in five (22 percent) respondents state that a result of suffering cyberattacks, IT outages or network failures, have resulted in a CEO departure. The study also highlights a financial impact of crises and a lack of resilience in the face of a crisis:
The average UK organisation now reports a loss of £1,411,148 annually due to downtime;
30 percent of respondents admitted strategic decisions become more difficult to make; and
24 percent stated it becomes harder to provide a clear direction for business, and puts the future of their job into question.
“Nobody wants to suffer a crisis on their watch,” Kathy. “We’ve seen the personal toll already in other instances of CEOs exiting their role as a result of being unable to protect their businesses from technology crises. Companies need to be agile, available and secure at all times to ensure the success of their business and the welfare of employees. Having a resilient mindset, a plan in place, and the technological know-how to weather different IT storms will ensure companies of all sizes adhere to the Resilience Imperative.”
About this research
This research of 250 C-suite respondents in companies with 500-plus employees in the UK was by Censuswide on behalf of Sungard Availability Services in March. Visit https://www.sungardas.com.
