millennium
'utM.'
Every operations and IT person around
the world is busy trying to beat the
doek. The millennium bug continues to
haunt them as the days to countdown
disappear under a weiter of work. In
the front office, people often airily
wave away the imminent breakdown
of life as we have come to know it,
saying: Not our problem, beating the
bug is down to operations. But is it?
Bill Padula and Dan McHale explain.
On line
ufrnm>.
Checking up
Knowing the score
4 What'sNewS Issue 7-July 1998
Challenge 2000
It is not every bank in the US that can
produce a letter from the FED in New
York confirming RFs Year 2000 program
'appears adequate and progress is
satisfactory'. The reality for many banks
and, more importantly, for many
customers is that they either have not yet
put their plan to work, or do not have a
plan at all. The reason RI in North
America is ahead of the field is due to the
recognition of one very salient fact: the
millenium bug is not just an operations
problem, it affects every least employee, in
every single department. 'That's from a
personal angle, but also from a
professional perspective,' says Padula.
This is one reason why Dan McHale has
been travelling the country, talking to
relationship managers and customers
throughout the US. 'It is not enough to
know you have to be Y2K compliant as
an organization,' he says. 'You also have
to understand the customer implications.'
Padula picks up the story: 'If we finance a
health care company, their whole business
runs on computers, patiënt care, claims,
care management. Look at a cliënt who
does poultry. Every aspect of that business
is computer-driven. They are fed, watered.
Bill Padula - it's important to
understand the millennium problem is
everyone's problem. That means
everyone has to work on solutions.
Dan McHale produces a regular
newletter on Y2K issues. For more info
on this and any other aspect of the
millenni urn bug, don't hesitate to
contact him on +1 212 916 7800.
everything is done by computer. On 1
January 2000 we could have the largest
collection small fried chicken ever seen.'
He laughs, but no one really thinks this
is funny. 'We are ahead of the FED, in
fact, because our early recognition of
the generality of the problem gave us
an edge.'
In the meantime, the FED has now issued^
a directive on Y2K compliance, not only
internally, but also in customer. 'The FED
has said you have to look at all your
customers and decide how their risk rating
rnay change as a result of their reliance on
teehnology,' McHale explains. 'The reality
is that a lot of clients haven't thought
about it at all. That's a bit of a worry. So
1've been going on briefing trips to our
relationship managers to let them know
what they were going to have to do. We
actually produced a checklist for them
based on the FED guidelines to show
what might be needed.' The US central
bank has been very supportive. And so,
says McHale, has the Dutch central bank.
'But there are others around the world
that have done nothing to make sure
banks or other organizations are
compliant. Maybe our checklist can help
our people out in those countries.'
New York's almost pioneering position is
certainly driven by the US authorities.
But, according to McHale, another
problem is that a lot of Rabobank offices
have an IT person responsible for the
2000 situation. 'Maybe it helps that Tm
not an IT guy, Tm somewhere between
front and back. T he millennium project is
run by technical people out of global IT.
Of course, you have to take care of what's
in house first. But the whole issue of the
year 2000 is outside your control. So what
we've done is put together a questionnaire
for our customers, and we'd certainly be
willing to have other offices take a look at
it. It asks them questions such as do you
have a Y2K plan, do your have a budget,^
do you have contingency plans, and many
more. Knowing these things about a
customer is just as important to us as a
bank as the internal systems.'
