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Bosses ready for computer bug
A MAJORITY of British chief executives believe that their corporate computer systems are ready for 2000 and that most British companies will be prepared for the switchover, according to a survey released this week. However, the interim management company Executives on Assignment, which conducted the survey, found that only half of the executives had made contingency plans, such as manual by-pass systems, in the event that computer systems failed.
The millennium bug, or Y2K as it is also known, occurs because many computers systems and embedded chips will fail to recognise the date change from 1999 to 2000.
Practically every chief executive surveyed, or 98 per cent, has carried out full audits of corporate computer systems or are in the process of doing so. The most serious anticipated failures relate to accounting and production: 40 per cent thought companies might suffer severe cash flow problems and 30 per cent believed that production lines might grind to a halt and payrolls stop running.
Just above 25 per cent thought that some businesses might go bust.
The chief executives were also asked whether they had sought Year 2000 compliance from their suppliers, banks and customers.
While 80 per cent sought confirmation of compliance from their suppliers and 71 per cent from their banks, only 63 per cent sought compliance from customers.