Risk Management Regime
DTCC has a well established Corporate Risk Framework by which it sets and monitors its “risk tolerances” - the levels and types of risk the organization is willing to accept (and avoid) in order to achieve its business objectives. Each of the organization’s key risks - structured in the form of a risk family matrix - is monitored against its prescribed risk tolerances. The senior executive team reviews and refines, and the Board approves, the organization’s risk tolerances on at least an annual basis. To protect the organization and its clients, DTCC Corporate Risk Framework employs a combination of risk management tools, including strict criteria for participation. Some of the most important tools are described below.