Chicken Little Calls, Again
We live in a world of constant crisis. It seems that from one minute to the next, we are bombarded with news of yet another impending disaster. One of the themes of this column is the need for non-profits - charities and not-for-profit organizations - to practice risk management. As we have previously noted, the goal of risk management is to improve management by acknowledging and controlling risks. Risk management is not about buying insurance. It is not about avoiding lawsuits. Instead it is about protecting and conserving your organization's resources and providing goods and services sensibly. The purpose of risk management is to improve an organization's operations by having risks acknowledged and, as possible, controlled. So what kind of risk management does a non-profit practise in the face of the so called Year 2000 bug?
First of all, what is it?
The Year 2000 computing problem stems from the practice of representing the year as a two digit code instead of four (e.g. "97" for "1997"). When "00" is entered for the Year 2000, the date may either be interpreted as "1900" or cause the system to fail. This applies to many existing technologies or business applications, from word processing to networks to electronic equipment and support systems.
So what?
Does your organization
- use a computer, fax machine, telephone, cell phone, cash register, time clocks?
- have computer networks?
- use computerized production equipment or machinery?
- have any automated burglar or fire alarms, sprinkler system or lighting systems?
- have computerized building access control?
If you answered "yes" to any of those questions, you could have a Year 2000 problem. To avoid any disruption to your operations, it is vital that you give personal attention to this possibility.
But it won't affect me, we're so small
This attitude was the quite shocking result shown by a recent Statistics Canada survey conducted for Industry Canada as part of the Year 2000 Task Force looking at the Canadian economy and Year 2000 awareness. While many had heard about the problem, only a small percentage thought it affected them and were going to do anything about the possible impact. The head in the sand school of risk management.
No one knows the extent of what will happen. But computer processes are everywhere and date calculations an essential part of those applications. And while there is considerable work being done in the public and private sectors, little attention is being paid to the possible impact on the non-profit community.
So what can my non-profit do?
Be aware that Year 2000 issues could affect you. Next, take prudent steps to guide your organizations to determine what could happen, how to prevent damaging outcomes and how to handle those results if they do occur. The steps below serve as a general guide only. Each situation is unique; you will want to ensure that the steps you take are tailored to your specific situation and that appropriate precautions to safeguard the integrity of your data and systems have been taken.
- Assign someone at the most senior level in your organization to be responsible for the Year 2000 issue and insist on a plan and progress reports.
- Know what kind of electronic systems, software applications you have.
- Determine which of your electronic systems, software applications are affected, how you want to make them ready for the Year 2000 and budget the cost to fix them.
- Determine which systems are essential to your day-to-day operations and where your systems are linked or dependent on outside systems.
- Correct or replace your systems.
- Test the corrected systems thoroughly, including simulating real operating conditions.
- Assess the impact on you of problems presented by all suppliers, customers, service providers and be ready to provide information on your Year 2000 readiness to them.
- Develop a contingency plan.
- Don't overlook the legal implications of not being ready.
Even if you use only a personal computer and standard off the shelf applications, you still need to examine the impact of Year 2000 date. You should contact your vendors, service providers or other experts to help define your requirements and select the best solutions. Talk to funders and contracting suppliers and see how they are handling the problem. Above all, take the time to know how your organization might be affected.
For more information contact Industry Canada at 1 800 270 8220.
Visit recommended web sites:
Canadian Federation of Independent Business
Information Technology Association of Canada
Laird Hunter is a lawyer with the firm of Worton and Hunter in Edmonton, Alberta
