Williams notes most non-centrally cleared bilateral repo transactions involving Treasury securities had zero haircuts according to OFR data.
“Meanwhile, in the NCCBR market segment, use of repo haircuts is fairly infrequent, with two pilot data collections in the NCCBR segment by the Office of Financial Research showing the majority of transactions involving Treasury securities had zero haircuts.”
Williams argues technology now actively shapes how risk managers perceive and interpret risk, not just manage it.
“This is the critical shift: We are no longer simply using technology to manage risk—we are using technology that is actively shaping how we perceive and interpret risk.”
Williams defines culture as an operational asset and backup system for judgment when data or models fail.
“Culture is not “soft,” or secondary. Culture is an operational asset. It is a form of resiliency, a non-technical redundancy, a backup system for judgment when data is incomplete, or the model is misleading.”
Williams identifies structural friction between risk functions operating in review cycles and technologies operating in real time.
“We have risk functions that operate in review cycles, but technologies and business processes that operate in real time.”
Williams argues the next frontier of risk management is integration across functions, not deeper specialization.
“That’s why the next frontier of risk management is not deeper specialization. It’s integration: strategic, ethical, and operational coherence—across functions, levels, and tools.”
Williams asserts culture is an operational asset and form of resiliency, not soft or secondary.
“Culture is not “soft,” or secondary. Culture is an operational asset. It is a form of resiliency, a non-technical redundancy, a backup system for judgment”