Managing Risk Overview

At the Top – The Board

The DTCC Board of Directors is responsible for providing direction to and overseeing the conduct of the enterprise in the interests of the company and its shareholders and other stakeholders ‒ including investors, issuers, participants and regulators in the financial markets that DTCC serves.

Individuals elected to the DTCC Board of Directors are also elected to the Boards of Directors of NSCC, FICC and DTC. These boards generally operate together with the DTCC Board.

The Board plays a key role in policy development, establishment of corporate objectives, financial management and operational planning.

The Board’s objectives with respect to the activities of NSCC, FICC and DTC are:

• to promote the prompt and accurate clearance and settlement of securities transactions.
• the safeguarding of securities and funds in the custody or control of NSCC, FICC, and DTC.
• the safeguarding of securities and funds for which NSCC, FICC, and DTC are responsible.

• Governance Structure

  The Board has ultimate responsibility for establishing the organization’s risk management framework and for the effectiveness of its implementation. However, applicable guidelines make clear that the Board is not expected to itself implement the organization’s risk management framework or to carry out the day-to-day management of risks. Rather, the Board, in discharging its responsibilities works closely with management and may assign tasks to board committees. Board committees in turn may delegate management-related responsibilities to management.