EUROPEAN BANKS NOT IMMUNE TO TERRORIST DISRUPTIONS

The potentially huge economic and social impact of the war on terrorism declared by global leaders extends well beyond U.S. borders, according to a report by GartnerGroup.

In Europe, the disruptions should immediately concern enterprises involved in final preparations for the introduction of euro coins and notes on January 1, 2002.

"At the time of the recent terror attacks, most enterprises had just about finalized their preparations, appraised their readiness to operate in euros, assessed residual risks and prepared business continuity plans. Now, the landscape in which this final changeover will occur has changed drastically, and enterprises must revise their plans accordingly," wrote Gartner analysts Andrea Di Maio and Nick Jones.

A similar attack in Europe during the euro transition could be particularly disruptive, as could the consequences of an actual war situation. Enterprises operating in Europe should assess how an attack or a war condition would affect their ability to complete the changeover and continue business smoothly in 2002.

Euro program managers should reassess risk and plan for further disruptions, resource limitations and the diversion of corporate focus. And enterprises must root euro changeover activities in the business continuity planning and other initiatives for responding to what may become actual war conditions.

Gartner recommends that organizations focus on the following areas: business continuity and disaster recovery; consumer behavior; robberies and counterfeiting; cyberattacks; increase in Internet traffic; staff cuts; travel restrictions; insufficient attention to euro conversion.

The events of September 11 may benefit the euro changeover, Gartner reported, by making enterprises more prepared for interruptions in, or degradation of, services. However, growing demand for disaster recovery facilities will reduce the availability of sites for last-minute testing and backing up systems for the euro conversion.