For example, the Group of Twenty (which has significant emerging market representation) has largely supplanted the Group of Seven as the premier global forum for economic and financial policy matters, and emerging market economies have been given increased power in setting the policies of the International Monetary Fund.
The other aspect is that risks become more firm-specific as the success of a company is becoming increasingly dependent on “soft” factors such as information on customers’ preferences. For the financial system, these changes create the need for adjustment in three areas: The design of financial contracts, the valuation of firms and assessment of business risk, and the risk management of financial institutions.