Companies 'must manage risk of eurozone crisis'

A new report has highlighted the need for companies to adopt an appropriate risk management strategy in light of the continuing financial instability in the eurozone.

Analysis from Gartner has stated that chief information officers (CIOs) should be looking at the business impact of possible outcomes of the crisis, such as government/bank defaults, counterparty bankruptcy or the breakup of the single currency.

Such developments will require careful management of factors such as market volatility, capital costs and human resources if companies are to survive, making proactive planning a vital step.

The analyst noted that the current crisis affects every company doing business in or with the region, meaning it is essential that CIOs strive to maintain business continuity.

David Furlonger, vice president and Gartner Fellow, said: "This crisis presents CIOs with an opportunity to make substantial and bold steps to meet chief executive officer demands and demonstrate the importance and true value of IT."

This comes after the euro weakened to its lowest level since January 2011 earlier today (December 13th 2011).