The OCC announced that it will no longer examine its regulated institutions for reputation risk and is removing references to reputation risk from its Comptroller’s Handbook booklets and guides.
OCC Objectives: The OCC said these actions support its mission and supervisory objectives without altering its expectation that banks remain diligent and adhere to prudent risk management practices across all other risk areas.
Agency Statement: “The OCC’s examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion,” said Acting Comptroller of the Currency Rodney Hood. “Focusing future examination activities on more transparent risk areas improves public confidence in the OCC’s supervisory process and makes clear that the OCC has not and does not make business decisions for banks.”
Updating Materials: The OCC said it has begun removal of references to reputation risk from OCC handbooks and guidance issuances and expects to complete its efforts to update its public documents in the coming weeks.
