Arthur Andersen Survey Finds Surge in Office Technology Usage -- and Uncontrolled Risks; Half Believe They Lack Adequate Controls for Internet Usage; 39 Percent Concerned About Cellular Safety.

CHICAGO--(BUSINESS WIRE)--May 13, 1996--An Arthur Andersen survey finds that 50 percent of individuals responsible for managing business risk at global corporations don't believe they have adequate security systems in place to manage Internet access, while 39 percent have similar concerns about their cellular communications. The survey was conducted at the Institute of Internal Auditors' Advanced Technology Conference.

``The security of office technologies must be high on an organization's priority list when considering business risks,'' said J. Russell Gates, partner with Arthur Andersen's Computer Risk Management (CRM) group. ``The survey shows that technology risks exist and little is being done to access or control them. From the boilerroom to the boardroom, there is a need to implement processes that identify, manage and control risks. This integrated approach helps to eliminate ``risk gaps.''

Highlights of the survey:

-- Laptop/Notebook Computers -- Despite being one of the most widely implemented and heavily used technologies (53 percent of respondents), 16 percent still feel they have inadequate controls in place.

-- Remote Access To Data And Systems -- While an increasing number of companies are moving to a distributed computing architecture, 18 percent felt they have inadequate control of remote users.

-- Cellular Communications -- Despite the worldwide increase in cellular fraud, 39 percent of organizations are taking no action to monitor risk.

-- Voice Mail and PBX Systems -- Although more than half the survey respondents use those systems, 24 percent feel they have inadequate security control.

-- Internet Access -- With the boom in Internet usage, 50 percent of respondents said their risk controls were not keeping pace with Internet access.

-- Groupware and Workflow Systems -- In the fastest growing technology area, 29 percent of executives are taking no action to control risks.

Arthur Andersen's CRM Group teams with clients worldwide to provide a full range of information systems auditing, control, security and productivity services responsive to clients' business needs, using the Business Risk Model(TM), the CRM Security Framework(SM), the Global Best Practices(SM) knowledge base and other proprietary Arthur Andersen tools. Arthur Andersen's CRM Group includes professionals in Netware and other network operating systems, banking systems and ATM/POS network security, Internet firewalls, SAP R/3 security and integrity, business application systems audits, project management and conversion readiness assessments and computer data acquisition and analysis to support ``what if'' analyses or analyses necessary in litigation situations.

Arthur Andersen provides creative solutions to improve clients business performance through audit, tax, business advisory and specialty consulting services. Its professionals combine extensive technical competence and industry experience with innovative and progressive thought, enabling Arthur Andersen to exceed client expectations.

Arthur Andersen is a part of Andersen Worldwide, the world's largest professional service provider. With more than 82,000 personnel in more than 76 countries, its global practice is conducted by member firms in 361 locations.

SURVEY METHODOLOGY: As part of its participation in the 1995 Institute of Internal Auditors' (IIA) Advanced Technology Conference held in Orlando, Fla., Arthur Andersen asked internal auditors and information systems auditors from business and government to complete an in-depth questionnaire and assess the degree to which virtual office technologies were actually being implemented in their organizations. We also asked them to assess the associated risks to their companies and the controls being put into place to manage these risks. These auditors and IT professionals have a unique cross- functional scope of their organizations. They are able to see technology as it connects and disconnects, professionals and their information. These survey respondents have an integrated view of technology and its risks in the office. -0-

EDITOR'S NOTES: Full Text and Charts are available in ``Business Risks and The Virtual Office'' survey booklet.

CONTACT: Arthur Andersen

Jim Nickerson, 312/507-8240

or

Makovsky & Company

Trista Voss, 212/508-9627