DTCC has announced the addition of two new managing directors to its risk management organization. Uwe Bott has been named managing director, Systemic Risk, and Timothy Cuddihy has been named managing director, Fixed Income Risk Management, Enterprise Risk Management (ERM). Both executives have decades of experience in a range of risk management positions in financial services.
Bott: systemic risk focus
Bott will be responsible for identifying, evaluating and mitigating potential sources of systemic risk arising from new and existing DTCC activities, products, processes and systems. In this capacity, he will play a key role in the strategic and tactical design and structuring of the systemic risk function in line with DTCC’s business initiatives, regulatory expectations and global industry trends.
Uwe Bott, DTCC managing director, Systemic Risk
Bott will report to DTCC Chief Systemic Risk Officer Nan Noonan. “In today’s market environment, the focus on systemic risk is a heightened priority for DTCC, and we are committed to looking at ways to aggressively strengthen our risk management to provide even greater protection to the industry,” Noonan said. “We are pleased to have someone with Uwe’s extensive background and expertise at DTCC as we continue our work to increase the market’s resilience against systemic risk threats.”
Bott brings more than 20 years’ experience in risk management and regulatory affairs for financial services firms and government entities in the U.S. and overseas. He has worked as a DTCC consultant since 2010. Previously, he was senior advisor, Risk Management, with CLS Bank International in New York from 2003 to 2010. CLS Bank operates a multi-currency cash settlement system to eliminate settlement risk in the foreign exchange market.
Bott was also president and founder of Cross-Border Finance, Inc., which designs and implements risk management policies for clients globally, primarily in financial services. From 1996 to 2001, Bott was managing director and director of country risk for GE Capital’s Structured Finance Group. His work included designing and implementing a risk management system to optimize returns of the company’s cross-border assets. From 1990 to 1996, he was a senior analyst, Sovereign Risk Unit, for Moody’s Investors Service. He also worked at the Inter-American Development Bank from 1983 to 1990.
Bott was a Fulbright Scholar in the master’s program in economics at Georgetown University. He completed his undergraduate and graduate work at Albert-Ludwigs-Universitat in Freiburg, Germany, where he earned the equivalent of a law degree and bachelor of arts degree in economics.
Cuddihy: enterprise risk focus
Timothy Cuddihy, DTCC managing director, Fixed Income Risk Management, Enterprise Risk Management
Cuddihy will lead a team within ERM, supporting DTCC’s Fixed Income Clearing Corporation (FICC) subsidiary. He will be responsible for risk management, including designing and implementing new risk systems, enhancing existing systems, educating market participants, working with regulators on FICC’s business and risk approach, and developing and executing best practices. He will also be responsible for developing, communicating and ensuring adherence to DTCC’s risk policies and procedures.
Cuddihy will report to DTCC Chief Risk Officer Douglas George. “DTCC’s core mission is to protect the safety and soundness of the markets, so our organization needs to implement and maintain vigorous risk management practices and to attract and retain the best risk management talent,” George said.
“Tim has two decades of experience in risk management and has demonstrated an exceptional capacity to handle a variety of risk situations during varying market conditions. We are delighted to have someone of his ability and expertise join DTCC, where he will contribute to our efforts to transform how we manage risk in our organization.”
Cuddihy has more than 20 years’ experience in risk management in financial services.
He worked for seven years at WestLB AG as head of the bank’s market risk management team in New York, with responsibilities for the bank’s global structured credit products and its New York portfolio of traditional fixed income products. From 2001 to 2004, he was vice president, Finite and Structured Risk Products, at ACE Ltd., where he prepared and marketed structured credit, assetbacked securities (ABS), and alternative risk programs. He also worked for three years at Swiss Re as director, Structured Finance Group, and held previous positions at Liberty Mutual Holding Co. Ltd. and American International Group.
Over the course of his career, Cuddihy has had significant interaction with fixed income market participants and the industry under various market conditions. He has significant experience with benchmarking prices and collateral haircuts, developing sound control and valuation analyses of high-risk businesses, and working closely with both regulators and external auditors. He also has advised senior management on peak exposures, potential threats and alternatives to mitigate risks.
Cuddihy holds a master of business administration degree in finance from Rutgers University. He also earned a bachelor of arts degree in mathematics and statistics from Rutgers. @