One provision of the Dodd-Frank Act was creation of the Financial Stability Oversight Council.This council is charged with identifying nonbank financial companies that could increase the risk of collapse of the entire financial system.This risk is called

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The risk being referred to in the provision is systemic risk, which is the risk of the collapse of the entire financial system due to the failure of one large company or multiple interconnected companies. The Financial Stability Oversight Council was created to identify and address this risk by designating nonbank financial companies as systemically important and subjecting them to enhanced regulation and supervision.

One Provision of the Dodd-Frank Act Was Creation of the Financial