NAME THE QUESTION · 4 OF 7 · C1 · 50 min

The Risk Nobody Listed

A shipping giant lost its entire computer system to an attack aimed at someone else. A drug company faced demand that nobody could forecast. Both had to answer “what if?” with an honest range, and a plan.

← Ninety Days and Thirteen Thousand Bricks  ·  The whole pathway  ·  What if…? — the quick guide  ·  Who Knew, and When? →

Today: you'll see why the dangerous risk is often the one nobody listed, rate a risk by how likely and how bad it is, name an early warning, and choose between preventing, reducing, preparing for, or accepting it.
Before we start — have a go, and don't worry about mistakes:
  • Without looking back: what is the first question of the order-of-work lens from the last lesson, and what is the difference between urgent and loud?
  • What is the risk in your work that everyone knows about and nobody plans for?
  • Think of something that went wrong that nobody had thought of. What does that tell you about a list of risks?

The vocabulary of this lesson

Ten items. Say your answer out loud before you reveal it.

A · What do they mean here? Work it out from the context

Read the sentence, guess the meaning of the word in bold, then reveal.

The whole network depended on one server, which was a single point of failure: when it failed, everything failed with it.
single point of failure — one part of a system which, if it fails, makes the whole thing fail.
The company had a contingency plan, so when the main supplier failed, staff knew exactly which second supplier to call.
contingency plan — a plan prepared in advance for something that might happen. Also: a contingency.
The attack was collateral damage: the criminals were aiming at one country, and companies in many others were hit by accident.
collateral damage — harm caused to people or things that were not the intended target.
The shortage was an unintended consequence of the sudden success: demand grew so fast that the factories could not keep up.
unintended consequence — a result that nobody planned or wanted, often arising from a decision or event.

B · Which term means…?

Three terms: a worst-case scenario · early warning · a safety net. Say the right one, then reveal.

Which term means a sign that something bad may be about to happen, giving time to act?
early warning — Two late deliveries in a row were the early warning that the supplier was in trouble.
Which term means something that protects you if a plan fails, so that you do not lose everything?
a safety net — The savings were their safety net when the business closed.
Which term means the most harmful way in which a situation could develop?
a worst-case scenario — In the worst-case scenario, production stops for a month.

C · Which word completes all three phrases?

One missing word fits every phrase in the group. Say it, then reveal.

raise the ___  ·  sound the ___  ·  a false ___
alarm — a warning of danger. raise the alarm means to tell others about a danger.
run the ___  ·  reduce the ___  ·  assess the ___
risk — the possibility that something bad will happen. run the risk means to accept that possibility.
a vicious ___  ·  break the ___  ·  stuck in a ___
cycle — a series of events that repeat. a vicious cycle is one where each bad thing causes the next.

Now use them — out loud

  • What is the single point of failure in a system you know well, and what is the contingency plan if it fails?
  • Describe an unintended consequence of a decision you have seen. Could there have been an early warning?
  • Give a worst-case scenario for something you are planning, then say what your safety net would be.

The cases, in three parts

Read each part. After it, answer the quick check from memory, then discuss one question. The figures are rounded, and the facts are as the cases were reported.

Part 1 — An attack aimed at someone else

You may have met this case in Ten Days Without Computers. This time, look at it through the lens.

On the afternoon of 27 June 2017, screens across the Copenhagen headquarters of the shipping company Maersk began turning black, one after another, faster than anyone could walk between them. Laptops rebooted into ransom notes. Employees ran along corridors telling colleagues to pull cables out of the wall. Within a couple of hours the company had lost essentially its entire IT estate: some forty-five thousand laptops and several thousand servers. Maersk then moved roughly one fifth of the world’s seaborne containers. Its booking system was down, and the gates at dozens of its port terminals no longer knew which truck should collect which box.

Maersk had not been attacked. That is the first strangeness of the case. The weapon, later named NotPetya, had been planted in an update to a Ukrainian accounting program that almost every company operating in Ukraine had to use. It looked like ransomware and displayed a payment demand, but in reality it was a wiper: the damage could not be undone and paying was pointless. Companies connected to Ukraine, from drug makers to chocolate factories, were collateral damage in what governments later attributed to a state attack on another state.

Total damage across all victims was later put at around ten billion dollars, routinely described as the most costly cyber incident in history. Maersk’s own share was roughly two hundred and fifty to three hundred million. But on the afternoon itself nobody was counting money. A company that moves a fifth of world trade had, in practice, no computers, and ships carrying thousands of containers were arriving at ports every few minutes, expecting instructions.

Quick check — from memory, then reveal:

1. How much of Maersk’s IT was lost, and how fast?

2. Why does the case say ‘Maersk had not been attacked’?

3. Why was paying the ransom pointless?

1. Essentially all of it, within a couple of hours: about forty-five thousand laptops and several thousand servers.

2. Because the malware was planted in a Ukrainian accounting program that firms in Ukraine had to use, and spread to companies in many countries by accident. Maersk was collateral damage.

3. Because it was a wiper disguised as ransomware: the damage could not be undone, whatever was paid.

Discuss:
  • Maersk’s exposure came through one obscure piece of software that was obligatory in one country. Which small third party is wired into everything in your organisation?

Part 2 — Ten days on paper, and one server in Ghana

You may have met this case in Ten Days Without Computers. This time, look at it through the lens.

What happened over the next ten days is why the case is taught. With the formal systems gone, the informal organisation took over. Terminal staff waved trucks through gates on judgement and handwritten lists. Bookings were taken down in personal notebooks and coordinated through WhatsApp groups and free email accounts. People who remembered pre-digital processes suddenly became the most valuable in the building. The ships themselves kept sailing, because their operational systems were separate. The company later reckoned it had worked at something like eighty per cent of normal volume through the blackout.

Recovery hit a wall that had been invisible until that week. Rebuilding the network needed the directory system that holds every user, password and permission, and Maersk discovered that its domain controllers, the servers holding that core, were all replicas of one another. They had been destroyed together, in every country. Then someone found an exception: in an office in Ghana, a single domain controller had been offline during the attack, knocked out by a local power cut. One unplanned blackout in West Africa had preserved the only surviving copy. The disk was flown to Britain and became the seed from which the network was regrown.

The core was rebuilt in about ten days, with a temporary command centre, staff and contractors working around the clock, and four thousand new servers. Full recovery took months. The lesson most often taken is not that the attack could have been predicted. It is that the company had a single point of failure that nobody had listed, and was saved by luck, and by people who could still work without computers.

Quick check — from memory, then reveal:

1. How did Maersk keep operating while the computers were down?

2. What was the hidden single point of failure, and what saved the company?

3. What is the lesson most often taken from the case?

1. By hand and by improvisation: handwritten lists, personal notebooks, WhatsApp groups and free email accounts, and staff who remembered paper processes. About eighty per cent of normal volume was reportedly handled this way.

2. All the domain controllers were replicas, so all were destroyed together. A single one in Ghana survived only because a local power cut had taken it offline during the attack.

3. That the company had a single point of failure nobody had listed, and was saved by luck and by people who could still work without computers; not that the attack could have been predicted.

Discuss:
  • Maersk was saved partly by a power cut. How much of your organisation’s resilience is a plan, and how much is luck nobody has noticed?

Part 3 — Saying the range, not the number

You may have met this case in The Problem of Too Much Demand. This time, look at it through the lens.

A different company faced the opposite problem. Novo Nordisk, a century-old Danish maker of insulin, saw demand for its weight-loss and diabetes drugs, sold as Wegovy and Ozempic, rise faster than it could build factories. Injectable drugs cannot be scaled like software, and a new sterile filling line takes years to build and validate. The company ended up holding back launches in new countries and asking doctors, in effect, to stop creating new customers. It committed tens of billions of dollars to new plants, and a rival drug from Eli Lilly arrived with strong results. Through it all ran a strange question: how big is this market? Forecasts for the obesity-drug market by 2030 ranged from fifty billion dollars to a hundred and thirty billion, a spread so wide it amounted to a confession.

Use the lens. What could happen? At Maersk, the loss of every system together; at Novo, too little capacity, or too much. How likely, and how bad? The Maersk event was very unlikely and enormously damaging; Novo’s was likely in both directions. What would warn us? At Maersk, nothing did. At Novo, shortages and rival results were visible. What is our response? For Maersk, a prepared fallback, and a copy of the identity core kept apart. For Novo, plans for a range of futures rather than one number.

The lens will not make a surprise predictable. What it does is force the question that is usually skipped: what is the one thing that, if lost everywhere at once, would stop us from recovering? And it makes an honest answer to how big? sound like a range with a reason, not a single number defended too loudly.

Quick check — from memory, then reveal:

1. Why could Novo Nordisk not simply build more factories at once?

2. What did the forecasts for the obesity-drug market in 2030 range between?

3. What question does the lens force that is usually skipped?

1. Injectable drugs cannot be scaled like software, and a new sterile filling line takes years to build and validate.

2. From about fifty billion dollars to about a hundred and thirty billion: a spread so wide it amounted to a confession.

3. What is the one thing that, if lost everywhere at once, would stop us from recovering?

Discuss:
  • When you give a forecast, do you say a number or a range? What would change if you said the range?

How the lens works

A “What if…?” question asks you to think ahead: what could happen, and are we ready? The danger is that people list only the risks they can already picture. The lens makes you rate each one, name an early warning, and choose a response. It is a thinking aid: it will not make the unexpected predictable, but it makes your answer honest about what you do not know.

1What couldhappen?2How likely,how bad?3What wouldwarn us?4What is ourresponse?it can lead toPrevent itstop the eventfrom happeningat allReduce itmake it smaller,or limit thedamagePrepare for ita warning signand a plan BAccept itlow risk, costly toavoid, said out loud

Using it, step by step

  1. What could happen? Name the likely event and the severe one; they are often different. Include one that nobody has listed.
  2. How likely, and how bad? Rough categories are enough: low, medium, high. A rare event that is catastrophic needs more thought than a likely event that is minor.
  3. What would warn us early? A sign you can actually watch for, such as two late deliveries in a row.
  4. What is our response? Prevent it, reduce it, prepare for it, or accept it knowingly. Then say it: It is unlikely but serious, so I would prepare rather than accept it, because…

Try it yourself

Each situation describes a risk and what could be done. Which response does the lens point to? Choose, then check.

1. A hospital could lose mains power. Outages are rare, but patients on life support would be at risk. Backup generators will switch on automatically and be tested every month.
2. A bank discovers that a door to its server room is often left unlocked. Fixing the lock costs almost nothing.
3. A café might lose a few customers on rainy days. Avoiding the loss would cost more than the loss itself.
4. A company keeps all its customer data in one place. It decides to spread the data over three separate systems, so that a breach of any one exposes only a third.
5. A critical supplier might fail. It is unlikely, but production would stop within two weeks. The company will watch for two late deliveries in a row and qualify a second supplier in advance.
6. A chemical store stands near a school. The dangerous chemical can simply be replaced with a safe one at no great cost.
7. A software firm cannot stop every cyber-attack. It limits what each system can access, so an attack that gets in can reach only a small part of the company.

1. Prepare for it — the hospital cannot stop an outage, but a plan B is ready and tested.

2. Prevent it — the cause is simple and cheap to remove, so the event can be stopped from happening at all.

3. Accept it — the risk is low and the cost of avoiding it is higher than the damage; the key is to say so knowingly.

4. Reduce it — the breach is not stopped, but the damage from each one is made smaller.

5. Prepare for it — it combines an early warning with a plan B.

6. Prevent it — removing the cause stops the event from happening at all.

7. Reduce it — it limits the damage if the event happens instead of stopping or planning around it.

Where the lens breaks

False comfort from numbers. Ratings such as ‘low’ can hide guesses. Say how sure you are and what you do not know.

The risk nobody listed. A list of risks is a list of what people could imagine. Ask: what single thing, if lost everywhere at once, would stop us recovering?

Over-preparing. Not every risk deserves a plan. Accepting a small risk knowingly is a decision; ignoring it is not.

Talk it through:
  • Which would you rather be known for in your field: preventing every risk you could imagine, or recovering quickly from one you could not? Why?
  • How do you tell the difference between a risk worth accepting and a risk you have simply stopped noticing?

Related lessons

The Grid That Keeps People AliveThe risk matrix: likelihood against consequence, and where it comes from. Open the lesson →
Scanning the HorizonPESTLE: a checklist for the risks outside your organisation. Open the lesson →
Ten Days Without ComputersThe full Maersk and NotPetya case. Open the lesson →
The Problem of Too Much DemandThe full Novo Nordisk case. Open the lesson →
Calibrated CertaintyHow to say exactly how sure you are. Open the lesson →

Language — Likelihood, range and consequence

A good answer to a ‘what if’ sounds exactly as sure as you are. This language says how likely something is, gives a range instead of one number, and names the consequence.

Likelihood: is likely / unlikely to · is bound to · may well · could · there is a real chance that · stands to lose. Something is bound to go wrong in so large a system. The supplier is unlikely to fail, but if it does, we stand to lose a month’s production.
Giving a range: between… and… · from… to… · in the region of · somewhere around. Estimates range from fifty to a hundred and thirty billion dollars. Losses are in the region of two hundred million.
Conditions of occurrence: in the event of a failure · should it occur · if it were to happen. In the event of an attack, staff will switch to paper.

1. Say how likely

Use each word or phrase from the box once: unlikely · event · chance · bound.

1. The supplier is to fail this winter; the probability is very small.

2. In the of an attack, staff will switch to paper at once.

3. There is a real that demand will double within a year.

4. In a system this large, something is to go wrong sooner or later.

1. unlikely — unlikely to + infinitive for a small probability

2. event — in the event of + noun

3. chance — a real chance that

4. bound — bound to for something almost certain

2. Give a range

Write one word in each gap.

1. Estimates range fifty a hundred and thirty billion dollars.

2. Demand could be anywhere two and four million units.

3. Losses are expected to be the region of two hundred million.

4. The true figure is far likely to lie in the middle of the range than at either end.

1. from … to — range from… to…

2. between — between… and…

3. in — in the region of

4. more — more likely to lie… than…

Now describe a risk in your own work in four sentences: say what could happen, how likely and how bad it is, with a range and not a single number, and what the response is.

Speak

Say how likely, how bad, and what you would do. Choose a task, start the timer, and talk.

Useful language: “It is unlikely, but if it happens we stand to lose…” · “The early warning would be…” · “In the event of…, we would…” · “I’d put it somewhere between… and…” · “I would prepare rather than accept it, because…” · “The risk nobody has listed is…”
Time remaining: 4:00
Task 1 — What if…?

Choose one: What happens to a hospital if its main computer system fails for a week? What happens to a shop if its biggest customer leaves? What happens to a team if its most experienced person resigns? Say what could happen, how likely and how bad, an early warning, and your response.

Task 2 — The risk nobody listed

Name a risk in an area you know that does not appear on most lists. Say why it is easy to miss, what single thing it could stop, and what would warn you.

Task 3 — A range, not a number

Your partner asks: “How much will this cost?” Give a range with a reason, say what is most likely, and say what would push it to either end.

To finish — the harder questions

  1. Maersk was saved partly by a power cut in Ghana. Is it honest to call that resilience, or luck? Does the answer matter?
  2. When does a prepared plan make people less careful, and when does it make them braver?
  3. Is it better to be too early or too late in raising an alarm? What would you want your colleagues to do?
  4. From memory: explain the four questions of the lens in four sentences, using single point of failure, early warning, bound to and in the event of.