Human error took center stage this week in the world of crisis and reputation management.  By now we all know that accounting and consulting firm PwC, the firm hired to tabulate and manage the results of the Academy Awards, gave the wrong envelope to actor Warren Beatty, who was responsible for reading the winner of the Best Picture Oscar.  The accountant in charge was distracted during the process (allegedly tweeting) and Beatty and Faye Dunaway read the wrong winner – and then chaos ensued.  The incident made worldwide headlines and PwC took a tremendous reputational hit.  Human error, compounded by distraction, was the primary cause.  (In case you haven’t heard, PwC partner Brian Cullinan was taken off the Academy Awards assignment, and the account is under review by the Academy.)

The other day, I attended a seminar at another accounting and consulting firm called MBAF in Miami.  They hosted a great event where a number of experts discussed current trends in cyber crime.  Interestingly, one of the main themes was human error.  We know that cyber criminals target organizations with hacking efforts and denial of service attacks, and in some cases companies get infiltrated as the bad guys find ways around firewalls and cyber-defenses.Read More