Skip to main content

Managing Risk

About Data

Risk management is the primary function of DTCC and has been since the organization's inception more than 40 years ago. The company's risk management role entails effective and efficient identification, measurement, monitoring and control of credit, market, liquidity, systemic, operational and other risks for the DTCC enterprise, its users and the marketplace.

Events in recent years underscore how the risk landscape is marked by an evolving array of threats that require DTCC to continuously rethink the way in which the organization and the industry at large respond. From DTCC's business continuity planning during Superstorm Sandy, which allowed the financial markets to remain operational, to the company's role in protecting the organization and its users from potential losses related to Knight Capital, DTCC builds on its experience and expertise to continually strengthen its risk management capabilities and, in the process, expands its footprint globally as a critical financial service provider.

With financial regulatory reform accelerating throughout the world, DTCC has worked continuously with supervisors globally to develop and maintain new and heightened risk requirements for financial infrastructures, such as central counterparties and trade repositories. Among these initiatives was the organization's ongoing and comprehensive response to the new CPSS-IOSCO Principles for Financial Market Infrastructures, which are helping to reinforce DTCC's risk management practices and standards.

DTCC will continue to evolve its risk management framework in response to the current environment and potential new risks. As part of these efforts, the company has embarked on a multiyear investment in its risk systems and capabilities.