Y2K's intricate challenge

The financial industry will invest about $9 billion to prepare for computer problems related to the year 2000 computer date transition (Y2K) issue. Its diligence on the Y2K matter makes it one of the best-prepared industries worldwide. However, although US financial institutions have dealt effectively with the in-house challenges relating to Y2K compliance, they must increasingly shift their attention to external Y2K-related issues which are largely beyond their control. For instance, banks with foreign operations will need to scrutinize overseas transactions and foreign counter-parties since many nations lag behind the US in terms of Y2K compliance. Y2K-related representations and initiatives must be positioned in a manner that will reduce the potential for litigation.