OCC Reports on Key Risks Facing Federal Banking System
- Source: occ.gov
Treliant Takeaway:
In a December 8, 2022 News Release the Office of the Comptroller of the Currency (OCC) reported key issues facing the federal banking system from its Semiannual Risk Perspective for Fall 2022. The key risks highlighted in the report include interest rate, operational, compliance and credit risks. Treliant’s seasoned professionals know risk. Our risk and compliance experts can advise and assist with assessment, mitigation, and remediation of today’s key risk themes.
Article Highlights:
The Semiannual Risk Perspective for Fall 2022 from the National Risk Committee of the OCC calls out the following four Key Risk Themes.
- Interest Rate Risk related to investment portfolios adversely affected by the rising rate environment.
- Operational Risk is elevated related to evolving Cyber threats, necessitating the need for heightened cyber threat monitoring. The current geopolitical climate and risk related to the increasing use of third-party relationships contributes to the risk.
- Elevated Compliance Risk is called out as banks continue to operate in a complex environment including product and service changes in response to the pandemic, industry changes and increasing implementation of innovative technology and expanded partnerships with third parties.
- Credit Risk in the commercial and retail loan portfolios as loan portfolios show some signs of potential weakening in some segments including a third quarter negative turn in credit performance.