DTCC is, at its core, a risk management organization. Each day it employs a combination of dedicated specialists, governance committees and advisory councils to monitor and assess systemic, operational and market/credit/liquidity risk and cyber security. In addition, it utilizes an internal framework of policies and procedures, analytical tools for risk quantification, and risk metrics in order to effectively measure and mitigate risk for DTCC and to support the integrity of the global financial system.
Three DTCC subsidiaries were designated in 2012 as Systemically Important Financial Market Utilities (SIFMUs) by the U.S. Financial Stability Oversight Council. As a result, the three companies, National Securities Clearing Corporation (NSCC), The Depository Trust Company (DTC) and the Fixed Income Clearing Corporation (FICC), all instituted procedures and stepped up their readiness to meet prescribed risk management standards and heightened oversight by U.S. regulatory authorities.
DTCC offers its clients a wide spectrum of educational resources to help them understand the organization's risk management activities and the impact these can have on their businesses. It also works closely with its clients in the early stages of developing new risk approaches and controls to help foster two-way dialogue and collaboration.
Click here to read the DTCC Risk Framework.