For example, it is necessary to know how the payment and settlement systems of different currencies work, and what risks arise from time lags. Such information and skills cannot be acquired overnight.
However, in view of the impact settlement risk could have on financial institutions, it BIS Review 43/1997  - 10 -  is indispensable to establish a system which makes possible the identification and measurement of settlement risk and the immediate reduction of risk following decisions by the management.