Concerns Grow as Y2K Draws Near, According to Survey of CFOs - Press Releasegreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Since this is a press release (A company trying to get its name in the paper, drum up more business, yada yada yada. . ), read it with a grain of salt. Anyway, here goes. . .
Countdown to 2000
Concerns Grow as Y2K Draws Near, According to Survey of CFOs
MENLO PARK, Calif., April 30 /PRNewswire/ -- Apprehension about the financial implications of the Year 2000 problem has escalated in the past year, according to a recent nationwide survey. Almost two-thirds (62 percent) of chief financial officers (CFOs) polled indicated they are concerned with the prospect of computer date conversion projects not being completed in time, up from 51 percent in 1998.
The survey was developed by RHI Management Resources, North America's largest consulting firm providing senior-level accounting and finance professionals on a project basis. It was conducted by an independent research firm and includes responses from 1,400 CFOs from a stratified random sample of companies with more than 20 employees.
CFOs were asked, "How concerned are you about the financial implications if the world's Year 2000 computer date conversion projects aren't completed in time?" Their responses:
Very concerned 21% 17%
Somewhat concerned 41% 34%
Not too concerned 31% 28%
Not concerned at all 7% 21%
"CFOs are feeling increased pressure to finalize critical date conversion projects before January 1 of the year 2000," said Cecil Gregg, executive director of RHI Management Resources. "Many companies have begun testing their accounting and finance applications and database systems -- to assess compliance, ensure proper operation and resolve unforeseen problems while there is still time."
"Time isn't the only factor," Gregg added. "Financial executives also recognize that the preparedness of business partners and suppliers can be as critical as having internal systems ready, since the entire supply chain can be adversely affected."
Large Firms Most Concerned
Chief financial officers at firms with more than 500 employees had the greatest reservations about Year 2000 compliance, with 20 percent reporting that they are very concerned and 50 percent somewhat concerned. "Larger companies may be dealing with older systems as well as vast amounts of data, adding to the uncertainty that they will be Y2K compliant in the few months that remain in 1999," said Gregg.
RHI Management Resources has locations in major cities throughout the United States, Canada and Europe, and offers online job search services at www.rhimr.com.
-- FM (email@example.com), April 30, 1999
Sorry this didn't format well.
-- FM (firstname.lastname@example.org), April 30, 1999.
Gee they better head on over to year2000.com and get a pep talk from Peter. Didn't he say "the worst has passed?"
-- a (email@example.com), April 30, 1999.
Mainstream media (at least in Japan) has picked up this story. I assume (or at least hope) they did substantiating interviews.
Financial officers becoming more concerned about Y2K
.c Kyodo News Service
NEW YORK, April 30 (Kyodo) -- An increasing number of corporate financial executives are concerned about the repercussions of possible computer malfunction stemming from the calendar change to the year 2000, or the Y2K problem, a U.S. research firm said Friday.
RHI Management Resources said its February survey showed 62% of chief financial officers (CFOs) at companies are ''concerned about the financial implications if the world's year 2000 computer date conversion projects aren't completed in time.'' The figure jumped from 51% a year earlier.
''Time isn't the only factor,'' Cecil Gregg, RHI executive director, said in a statement. ''Financial executives also recognized that the preparedness of business partners and suppliers can be as critical as having internal systems ready, since the entire supply chain can be adversely affected.''
Responses to the survey came from 1,409 CFOs from a stratified random sample of companies with more than 20 employees.
CFOs at bigger companies showed greater concern about the Y2K problem.
The percentage of CFOs who voiced concern came to 69.6% at companies with 1,000 or more employees, compared with 60.2% at firms with less than 50 employees, the survey showed.
''Larger companies may be dealing with older systems as well as vast amounts of data, adding to the uncertainty that they will be Y2K compliant in the few months that remain in 1999,'' Gregg said.
The survey also showed the industry categorized by the research firm as professional service sectors, such as those dealing with health, insurance and art, were the most concerned. Of CFOs in the industry, 71.9% replied they are concerned.
The industry group which demonstrated the least concern was the sector including transport and telecommunications companies with 43.6%.
-- FM (firstname.lastname@example.org), May 01, 1999.
"such as those dealing with health, insurance and art, were the most concerned."
What are the y2k problems with "art"?
-- mb (email@example.com), May 01, 1999.
What are the y2k problems with art? I dunno, but I'm bettin' somebody here will come up with a fun theory.
-- FM (firstname.lastname@example.org), May 01, 1999.