The impact of technological disruption on infrastructure
The impact of technological disruption on infrastructur
The future of infrastructure is dynamic and exciting. Organizations and stakeholders would do well to prepare for it by fully understanding the impact of technological risk, being able to articulate it, considering mitigation principles, and pricing it correctly.
In the past decade, infrastructure has remained a fairly stable asset class. Default rates have been low. Even with the lower default rates, recoveries have been high. Banks, while lending to infrastructure projects, and equity providers while executing these projects, have been able to price risk correctly and obtain a satisfactory return. However, this is unlikely to remain the case in the next decade due to the impact of technological disruption, which will have a seismic impact on the infrastructure sector.
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