Beattie says while much attention has been focused on potential risks and failures caused by Y2K there is also a possibility of upside in the situation for managers.

"Failures, or perceptions of failures often present investment opportunities," he says. "Any sharp price corrections in the build up to or the after math of any Y2K disruption could offer attractive buying opportunities."

He says companies with strong brand names, monopoly market structures and other forms of competitive advantage will likely survive temporary Y2K dislocations.

Beattie says markets tend to work on perceptions as well as fundamentals so managers will have to be vigilant.

"Decision making needs to be based around a clearly prescribed risk assessment and management plan, rather than reacting to rumour and market noise."

Beattie also says that while a lot of attention has been focussed on operating system risks, not much has been publicised about investment risks associated with Y2K.

These risks are considerable and include such things as:

Although the risks appear daunting they are not hugely different to risks daily faced by businesses and managers.

"It could be reasonably argued that the non-Y2K related investment risks faced every day are potentially more damaging because we have known about the Y2K risk for some time and we have been able to plan a comprehensive risk management strategy.

"No investment professional had that luxury before the Asian crisis, the Gulf War or the Mercury Energy power crisis in Auckland," he says.