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Clorox Sees Product Shortages Amid Cyberattack Cleanup

Executive Summary

The Clorox Company, a major US consumer products manufacturer, has been facing the impact of a recent cyberattack, which forced the company to take systems offline. This has resulted in disruptions, manual processes, and a reduced rate of operations.

Consequently, Clorox is experiencing an elevated level of consumer product availability issues. The company is still in the process of repairing its IT infrastructure and anticipates a gradual return to normal automated order processing. However, the exact timeline for fully normalized operations remains uncertain.

What is Happening

Clorox faced a cyberattack in mid-August, leading to the shutdown of some of its systems. The attack disrupted daily operations, requiring significant cleanup efforts.

Clorox has implemented workarounds for certain offline operations to continue servicing customers, but the breach has caused and is expected to continue causing disruptions to various aspects of its business operations.

Although the exact nature of the attack is undisclosed, the prolonged operational disruptions suggest a possible ransomware attack. Clorox engaged third-party experts to investigate the ongoing attack, and the company continues to work on securing its systems.

Takeaways

Cyberattacks often result in substantial financial losses, customer frustration, and damage to a company’s reputation. After system disruption, businesses like Clorox must invest significant resources in repairing their IT infrastructure, enhancing cybersecurity measures, and adapting to new operational challenges. The transition back to normal automated processes can be gradual and uncertain, impacting the company’s ability to meet consumer demands effectively.

Moreover, the mid-term effects of cyberattacks can extend beyond the operational realm, potentially eroding trust in the business and affecting customer loyalty.

This type of incident serves as a reminder that cybersecurity is not just a technical concern but a critical aspect of overall business resilience. Cyberattacks highlight the importance of proactive measures to safeguard digital assets and mitigate mid-term consequences that can impact a company’s competitiveness and market standing.

In today’s landscape, disruptive cyberattacks have become increasingly prevalent. To gain valuable insights into the challenges posed by such incidents, we engaged in an enlightening conversation with Stevan Bernard, former Executive VP of Global Protection Services at Sony Pictures Entertainment. Mr. Bernard shared his firsthand experiences and expertise, recounting the harrowing events of the unprecedented cyberattack that targeted Sony Pictures in 2014. You can view this eye-opening discussion in its entirety here.

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