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CHAPTER NINE | RISK MANAGEMENT
In a dynamic market and evolving regulatory environment, nothing is more important than risk management, especially as the nature of risk has become more complex, interconnected and unpredictable. In response, we have broadened the types of issues we track and enhanced our capabilities and supporting technology to keep pace with this evolution. In response to the 2016 market volatility, Bodson detailed how DTCC was strengthening its risk management system across its clearing agency subsidiaries to provide a greater level of protection for the firm and the industry. Key elements rolled out in 2016 included 15-minute processing, new portals, enhanced reporting, liquidity and margin enhancements for The Depository Trust Company and an expanded risk data warehouse. The firm and clients would use the technology to better manage risk, Bodson said.
MITIGATING RISK FOR THE INDUSTRY The Depository Trust & Clearing Corporation (DTCC) has assumed a global industry leadership role in promoting risk management, particularly around cybersecurity. In 2019, as part of a reassessment of its strategy and vision, DTCC took additional steps forward in helping other entities to improve their own risk management practices. In a white paper that year, “Resilience First: Promoting Financial Stability by Planning for Disruption,” DTCC called on market participants to establish building resilience as a global priority. It provided a roadmap to help these institutions focus on disaster recovery, business continuity management and cybersecurity in a more integrated way.
“We’ve been pleased by the industry’s receptiveness, and we are excited to continue these discussions,” Michael Bodson, who was president and CEO at the time, wrote in the 2019 Annual Report. DTCC helped establish the Financial Services Sector Coordinating Council Cybersecurity Profile, which enables firms and market infrastructures to satisfy compliance rules for multiple regulators at one time, freeing cyber teams from having to answer the same questions repeatedly. As a participant of the Financial Stability Board’s cyber working group, DTCC helped develop a tool kit of effective practices to manage cyber incident response and recovery.
2018 JULY
2018 JULY DTCC lands on the Forbes list of best midsize employers for the first time. DTCC also achieves a 100 percent rating on the Human Rights Campaign Corporate Equality Index and is recognized as one of the Best Places to Work for LGBT Equality for the sixth consecutive year.
2018 DTCC expands its global footprint, with 21 office locations and 4,508 employees. A decade earlier, in 2008, DTCC had 6 office locations and 2,584 employees.
2019 DTCC sets a processing
record, handling $2.15 quadrillion. It would mark a 16 percent increase over 2018.
With the United Kingdom declaring its intention to leave the European Union, DTCC opts to open an office in Dublin, Ireland. The move would allow the firm to continue to serve clients in Europe.
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