Potential impact of IT-directed investor relationship management on employment

Abstract

G20 countries are implementing comprehensive reforms that would affect business sectors—in particular, banks and their customers—as a result of the introduction of measures relative to counterparty credit risk (CCR) management (i.e., the risk when the counterparty of a transaction fails to meet its obligations or when it might be incapable of meeting the obligations before the fulfilment of a transaction). Regardless of whether the reform is incorporated in the US Dodd-Frank Act, the European Commission Capital Requirements Directive IV (CRD IV)/ Counterparty Credit Risk (CCR), the Canadian Office of the Superintendent of Financial Institutions (OSFI) Act or other similar acts in other G20 countries (the world’s 20 largest economies), or whether Basel III is implemented in full or not, banking and corporate financial management is set to undergo radical changes. There will be winners and losers coming out of the implementation process. The winners will be those organisations that achieve better credit ratings and increased cash flows as a result of cost savings gained from strengthened operational risk management.