From the editor.

• Author: Marshall, Jeffrey
• Position: Editorial

It's hard not to turn on the news or pick up a newspaper and not be aware of the potential for startling economic or political news, emanating from anywhere in the world. But companies don't have to operate in a reactive shell, writes Prof. Peter Navarro in our cover story. Based on research he and colleagues have conducted, he argues that companies that understand business cycles and can plan around exogenous shocks are better equipped to outgrow and outperform lesser prepared peers.

In the third installment of our series celebrating FEI's 75th anniversary, Dr. Robert A. Howell traces the evolution of the senior finance executive role over the past seven decades. Howell, a distinguished researcher and thinker about corporate strategy, finance and accounting, delivers an insightful and highly readable look at how changes in the economy, corporate strategy and policies helped alter and elevate the role of the controller in the 1930s to today's CFO.

Robert Davis knew he was signing on for a big challenge when he joined Computer Associates as CFO last year. The venerable software firm, wounded by an accounting scandal, is rebuilding its management team, processes and--if Davis has anything to say about it--its reputation. He spoke with me about how the recovery is faring, as well as the issues raised by the deferred prosecution agreement the company is facing.

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Even as the stark images of the damage from Hurricanes Katrina and Rita remain with us, another hurricane season is approaching. Executive Editor Ellen M. Heffes examines some research about business continuity and interviews three executives whose companies were battered by Katrina last year to find what lessons they have to offer.

"Global sourcing" is the latest in-vogue term--some might say, euphemism--for outsourcing, and far more palatable to many ears than "offshoring." Yet, thinking in terms of sourcing globally probably does represent the best way of...