Quotably Quoted - What the 2/99 Senate Report Really Said...greenspun.com : LUSENET : TB2K spinoff uncensored : One Thread |
INVESTIGATING THE IMPACT OF THE YEAR 2000 PROBLEM (2/24/99) - Prepared by U.S. Senate Special Committee on the Year 2000 Technology Problem - Senator Robert F. Bennett (R-Utah), Chairman.[Note: Two days prior to the release of this report, Senator Bennett stated on national television that those who suggest that it will be nothing more than a bump in the road are simply misinformed.]
GENERAL REMARKS. The Y2K problem is very real andY2K risk management efforts must be increased to avert serious disruptions The question is not will there be disruptions, but how severe the disruptions will be Leadership at the highest levels is lacking Many organizations critical to Americans safety and well-being are still not fully engaged in finding a solution National emergency and security planning for Y2K-related systems failures is just beginning. FEMA contingency plans are in draft form, but there is no national strategic plan to assure that critical infrastructures will continue to function.
The interdependent nature of technology systems makes the severity of possible problems difficult to predict. Adding to the confusion, there are still very few overall Y2K technology compliance assessments of infrastructure or industry sectors. Consequently, the fundamental questions of risk and personal preparedness cannot be answered at this time The Committeestill cannot conclusively determine how extensive the Y2K disruptions will be. Self-reporting has yielded unreliable assessments for most industry sectors. With few exceptions, disclosure of Y2K compliance is poor Unfortunately, the results of many surveys have been kept from public and Special Committee view... Despite an SEC rule requiring Y2K disclosure of public corporations, companies are reluctant to report poor compliance levels Senate hearings, interviews, and research have not produced convincing evidence that the Y2K problem is well in hand.
UTILITIES. According to NERC (North American Electric Reliability Council), only about 50% of the utilities had completed Y2K remediation as of December 1998. [Note, the Senate report misrepresented NERCs data which stated that only 44% of overall SYSTEMS were (self-reported) as ready, not that 44% of the plants were ready.]
The highly interconnected nature of the grids raises concern about cascading failures The interconnectedness makes the grid fragile and susceptible to Y2K disruptions. An outage in one part of the grid can cascade causing ripple effects on other parts of the grid. For example, a generation plant could go out in Maine, affecting power in Florida Nuclear facilities [which supply 40% of power east of the Mississippi] are lagging behind other electric facilities in their Y2K assessment and remediation efforts... While these problems [at nuclear facilities] should not affect plant safety, they could cause serious electricity production problems.
There are no comprehensive studies concerning the number of entities that would have to fail to put the entire grid at risk, but some experts suggest that it may be a very small percentage if in key locations. While complete power grid failure and prolonged blackout is highly unlikely, failure of at least some parts of the electric power industry, e.g., local or regional outages, is possible. [Note: this statement did not rule out nationwide blackouts, just prolonged ones. It also did not address the issue of fuel shortages or cyberterrorism which the report acknowledged elsewhere in the document as potential problems. Nor did it address the issue of reliance on the grid, and the resulting problems of the loss of nuclear or other plants from the systems capacity. Nor did it address the problem that it was not possible to fully test embedded systems prior to rollover. It also ignored NERCs recommendation at that time that contingency planning anticipate the possibility of a common mode failure which, by definition, would result in widespread problem outages, for which NERC believed that power rationing - such as damaging brownouts or rolling blackouts - may be necessary.]
OIL AND NATURAL GAS. Compliance among oil and natural gas utilities is also progressing slowly. A survey by the Committeeindicates a lack of contingency planning, overly optimistic assertions that compliance will be complete, and a lack of knowledge about suppliers Y2K status Y2K remediation in the gas and oil sector began too late and is progressing too slowly Most of the critical systems in this industry are still in the inventory and assessment phase, leaving little time for the more difficult phases of Y2K remediation and testing. As a result, the industry is not likely to complete repairs of all of its systems in time, which in turn means that disruptions in the production, transportation, and distribution of gas and oil are possible The U.S. gets nearly 50 percent of its oil from imports, and several key oil producing countries are behind in their Y2K remediation efforts. If these countries are unable to sustain the level of imports because of Y2K failures in the pumping, refining, or transportation of crude oil, the implications on the price of gasoline may be significant.
HEALTH CARE. Y2K could put the healthcare industry in intensive care The health care industry lags significantly in its Y2K preparations compared to other sectors. 90% of doctors offices have yet to address the problem 64% of hospitals - primarily smaller hospitals - have no plans to test their remediation efforts.
BUSINESS. Many small- and medium-sized businesses are extremely unprepared for Y2K disruptions. As businesses review their supply chains for Y2K preparedness, we will see a flight to quality Over 80% of small businesses are potentially exposed to Y2K problems 40%do not plan to take any action Medium-sized business may actually face the greatest overall Y2K exposure. Manual processing may no longer present a viable option for medium-sized businesses. They may also lack the appropriate resources to remediate affected systems and devices. Given that small and medium-sized businesses provide over 51% of the private sector output, the lack of action on their part may translate into a larger ripple that moves through the loosely linked supply chain.
The Gartner Groups predictions, by industry, of the percentage of companies likely to experience at least one mission-critical failure (a business interruption that could affect revenue and likely affect the continued operation of that business):
15% (insurance, investment services, banking, pharmaceuticals, computer manufacturing);
33% (heavy equipment, aerospace, medical equipment, software, semiconductor, telecom, retail, discrete manufacturing, publishing, biotechnology, consulting);
50% (chemical processing, transportation, power, natural gas, water, oil, law practices, medical practices, construction, transportation, pulp & paper, ocean shipping, hospitality, broadcast news, television, law enforcement);
66% (education, healthcare, government agencies, farming & agriculture, food processing, construction, city & town municipal services).
TRANSPORTATION. The transportation sector is the linchpin for just-in-time inventory management across most every sector. The Y2K readiness of this sector is critical to our global economy On average, the nations 670 domestic airports started Y2K compliance too late. The FAAhas a long way to go to be ready for Y2K and remains at risk. The situation with international air traffic control and airports is much more severe. The maritime shipping industry has not moved aggressively toward compliance. Disruptions to global trade are highly likely Public transit could be seriously disrupted.
GLOBAL. The biggest Y2K impact may occur internationally The U.S. is dependent on a healthy global economy Many [countries] have not even begun to address the problem. Thus, we should remain very skeptical about our ability to buy or sell goods from certain parts of the world Several U.S. trading partners are severely behind in their Y2K remediation. Canada, Australia and the United Kingdom have consistently appeared on the top of preparedness lists With the main exception of the United Kingdom, the Netherlands and Scandinavia, European countries have taken a strikingly relaxed attitude to Y2K The situation in Russia and China is even worse than in Europe... Venezuela and Saudi Arabia (two of the largest U.S. oil importers) are 12 to 18 months behind the U.S. in their Y2K remediation efforts. [The CEO of SunMicrosystems had recently announced that Asia was so far behind, he expected it to affect Suns ability to manufacture computers next year. Brazil, which produces most of our ball bearings, was threatened with economic collapse at that time. Euro conversion and economic turmoil in foreign countries were distracting those countries from Y2K efforts.]
-- Whatever (who@car.es), June 06, 2000
TRY AGAIN ! !
THE SENATE REPORT WAS OUT OF DATE BULL.
This report KILLED the DOOM PROFITEERS. The Public decided "things wouldn't be so bad" and the report was STALE when released.
"Cory Varian" started a thread in May complaining and asking if Y2k business was "off" to confirm a call he had with another Saviour, Saint Michael of LoserWire. He and others said it was.
THIS WAS ** OUT OF DATE ** when released. Bennett and Dodd later confirmed that one of their problems was the "delay" in reporting from the assorted agencies. Even in November, the GAO was dated vs. the reports of others at the Horn Hearings.
NOV. 1999 GAO Per Usual Behind the Learning Curve
From the one Agency that Horn, Bennett and the rest knew was *behind* in its ability to report *Current Status* time and time again in Y2k CDC problems the GAO
Joel Willemssen
AS FOR THIS: INVESTIGATING THE IMPACT OF THE YEAR 2000 PROBLEM (2/24/99) - Prepared by U.S. Senate Special Committee on the Year 2000 Technology Problem - Senator Robert F. Bennett (R-Utah), Chairman. [Note: Two days prior to the release of this report, Senator Bennett stated on national television that those who suggest that it will be nothing more than a bump in the road are simply misinformed.]
Director, Civil Agencies Information Systems, U.S. General Accounting OfficeIT WASN'T EVEN A BUMP IN THE ROAD. I WAS AT .5/10 VS. MANY AT 7-10/10 AND EVEN I WAS SURPRISED AT THE LACK OF IMPACTS.