Warning: expect the unexpected

By EUGENE BINGHAM

Alarming numbers of companies are ignoring advice to prepare for unexpected problems caused by the millennium bug.

While many businesses are confident they have fixed potential in-house problems, not enough have realised the importance of putting contingency plans in place.

The Y2K Readiness Commission's business and sector survey released yesterday shows that 87 per cent of businesses have completed - or expect to complete - their preparations.

But it also reveals that almost one in five large companies say they do not need a business continuity plan. More than 40 per cent of small companies, and 31 per cent of medium-sized businesses, believe that, too.

"We believe these numbers are a risk," said the commission chairman, Basil Logan.

"People need to recognise that, even if they don't have computers in their own business, they are still subject to disruption from suppliers, and we would urge them to focus on the risks to their businesses."

Companies also had to recognise the danger of knock-on effects from overseas.

"We know we can manage our own [problems] but we can't be sure that all the nations and organisations on whom we depend as exporters and operators have got their houses in order.

"We have advised importers and exporters to make sure they fully understand their exposure.

"Where they can, split sources of supply. People who are dependent on exports, make sure you are exporting to people who can pay you - make sure Y2K disruption on their part does not impact on you."

The survey, which is the last in a series of five before crunch day, was conducted in the first two weeks of last month.

Its key findings include:

* Providers of essential services are confident of their own preparations.

* The focus is now on completion and testing of continuity plans.

* Eighty-nine per cent think their businesses will not be significantly disrupted.

Of all businesses, 49 per cent say they will complete work in the period before New Year's Eve - and Mr Logan is confident they will do so.

He warned against any complacency, however, saying the commission hoped people would have "informed concern" about the bug.