Lesson learned from CrowdStrike incident: Bolster your vendor due diligence
Few community financial institutions were impacted by the CrowdStrike-induced IT outage earlier this month, but it served as a good reminder to double check licensing agreements and vendors.
Many credit unions and banks will be taking a closer look at their vendors after an IT outage struck businesses around the world July 19.
Some banks, including JPMorgan Chase, experienced disruptions earlier this month after a defective software update from tech company CrowdStrike knocked out Microsoft’s Windows operating system.
The $241 million-asset Landings Credit Union in Tempe, Arizona was not impacted, but President and CEO Brian Lee told Tyfone the incident certainly sparked some conversations.
“We have been digging in a little deeper on our vendor due diligence, both at the start of the relationships and ongoing,” Lee said. “We can’t predict every issue that might pop up, but we want to look at our reliance on any one vendor and think through the scenarios that could come up that would negatively impact our members.”
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