A main point of these studies was the need for counterparties both to recognize the potential for unsecured exposures to arise in the future and to measure such exposures more carefully. A second theme in the studies was the need for counterparties to recognize that, although collateral programs mitigate credit risk, they also introduce operational, liquidity, and legal risks.
To realize the benefits of the collateral program, back office systems must be very robust. That is, counterparties must be able to value portfolios, track collateral posted, call for any deficiencies, and verify the timely receipt of collateral. Various studies have noted that firms relying on collateral programs must establish rigorous controls and devote sufficient resources to them.