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 describes how diffused accountability means no single person makes a bad decision, yet the system fails.
“Later, when the risk materializes, we conduct a review and find that no single person made a bad decision. Instead, the system as a whole failed to “see” the risk clearly.”