Question

Topic: Acct & Financial Analysis

Share your thoughts on the threats facing modern organizations and the future of financial regulations.

Answer 1

The threats that modern organisations are facing is :

• One of the potential threat faced by organisations is data breach, due to growing use on internet people can now hack into the system and fish out personal details of customers and divulge out important financial information of organisations.
• The risk of artificial intelligence: due to the growing popularity of artificial intelligence is replacing humans with machines and due to the existence of machines in the organisations a number of problems will be faced by organisation which is difficult to address.
• the death of globalisation : globalisation opened doors of the businesses to to the world economy. People could now sell their goods and services to the world market as a whole. With the death of globalisations and rising trade barriers it is threat to the businesses of the all the modern organisations.

Future of financial regulations :

It is becoming very costly to keep with the costs of financial regulation. Financial regulation is carried out to promote transparency, simplicity and efficiency in the financial system, keeping the best interest of the investors.

It has been proposed to bring down the number of capital related requirements form 20 to 14. There is not going to be relaxation of regulatory practices but just some justified small changes will be brought about in the regulatory framework, keeping in mind transparency and efficiency which will not be compromised.

The new regulations will have improved capital requirements, liquidity requirements . there will be a more dynamic and forward looking approach to regulation in the future.