Bylined Articles

Jul 11, 2016 • Bylined Articles

Connecting the Dots: How DTCC Manages Contagion Risks

By Andrew Gray, DTCC Managing Director and Group Chief Risk Officer

Regulators and risk managers look beyond initial post-crisis insights to understand systemic vulnerabilities and enhance resilience
Andrew Gray, DTCC Managing Director, Group Chief Risk Officer

Andrew Gray, DTCC Managing Director and Group Chief Risk Officer, offers recommendations for managing the risk of interconnectedness in his article which appeared in the June 2016 issue of Risk.net.

As the Lehman Brothers bankruptcy in 2008 demonstrated, the failure of one highly interconnected entity can spread rapidly across the global financial system and have a devastating impact on financial stability. The level of financial interconnectedness cannot be overstated. Banks and other financial institutions are linked through intermediation chains that span the globe, creating an elaborate web of mutual interdependencies.

“Addressing interconnectedness risks is a work in progress that will continue to evolve as our understanding of the underlying dynamics matures,” Gray said. “As such, it represents the logical next step in the evolution of an organization’s risk management capabilities.”

To read the full article, click here.



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