Equipment breakdown emerging risks

Equipment continues to evolve with advanced technology and Cloud computing, but breakdown risks are becoming heightened

Our engineering experts outline six key emerging equipment breakdown risks:

1.     Technological complexity

As equipment becomes more advanced, the risk of breakdown due to complex technology increases. For example, losses can be caused by the breakdown of very small, but important components, such as sensors.

2.     Cyber-threats

The growing trend of digitalization exposes equipment to heightened risks of cyberattacks. For example, malware that infects machinery software not only causes damage to targeted equipment but can spread to other locations within a facility.

3.     Aging infrastructure

Aging equipment and infrastructure are more susceptible to breakdowns, especially if maintenance and upgrades are not adequately performed.

4.     Extreme weather

Extreme weather events caused by climate change, such as hurricanes, floods, and wildfires, can damage equipment and increase the likelihood of breakdowns. For example, equipment that is exposed to flood waters requires adequate restoration before re-energizing, due to moisture and contamination.

5.     Remote monitoring

While remote monitoring technology can enhance efficiency, it also introduces the risk of equipment breakdowns due to data breaches or system failures. For example, a cyber attacker infiltrating a boiler automation system can manipulate sensor data by feeding false information into the control system, causing the boiler to malfunction.

6.     Supply chain disruptions

Global supply chain disruptions which may result in longer lead times for equipment and parts needed for the repair of a loss. This can result in a higher business interruption and cost to repair.

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