Report: CEOs must be prepared for massive Internet disruption.(TechNewz)(Chief executive officers)

Business leaders must recognize the growing dependence of their business functions on the Internet, as well as the alarming risks posed to businesses and the U.S. economy as a whole in the event of a major Internet disruption. That was the conclusion of a report by the Washington, D.C.-based Business Roundtable.

The Roundtable report--Growing Business Dependence on the Internet: New Risks Require CEO Action--concludes that an Internet disruption would be detrimental not only to businesses, public institutions and citizens, but also the economy, estimating a global economic cost of approximately $250 billion.

"A prolonged and widespread Internet disruption will affect critical business operations at nearly every U.S. company, with ripple effects that will extend throughout the economy, disrupting vital financial and government operations," stated the report. "To address this new reality, businesses must assess their vulnerabilities and develop robust incident-response and continuity plans."

The report noted that an Internet disruption would not only affect nearly every U.S. company directly or indirectly, but the efforts to respond will create stress points that will hinder recovery. Furthermore, the report suggests there is a lack of awareness by business leaders regarding their reliance on the Internet, thus increasing vulnerability in the case of an interruption, malfunction or disruption.

Citing figures from The World Economic Forum, Geneva, Switzerland, the report estimates a 10 percent to 20 percent probability that a breakdown of critical information infrastructure will occur within the next 10 years.

The report's conclusions should prompt chief executive officers (CEOs) everywhere to take immediate necessary action to ensure the continuity of their businesses, according to Ed Rust, co-chairman of the Business Roundtable and chairman and CEO of State Farm Insurance, Bloomington, Illinois.

"America's CEOs have diligently prepared to address and respond to physical attacks that threaten the safety of our employees, economy and quality of life," said Rust. "Our report suggests that, similar to physical threats, the risks of attack through the Internet intended on impacting our businesses, economy and national security present new challenges and must be addressed."

Recommendations in the report for the nation's business leaders include:

* Assessing companies' Internet dependencies, based on their business operations;

* Proactively addressing Internet dependence and interdependence risks in corporate continuity and recovery plans;

* Engaging with industry partners, government and other CEOs to ensure alerts as well as response and recovery plans are in order;

* Sharing information on Internet disruptions with existing industry-operated information-sharing and analysis centers (ISACs); and

* Ensuring executive-level engagement with government to set and communicate expectations about early-warning and threat notifications.