OCC to Renew Information Collections on Market Risk & Cyber Risk Tool
The Office of the Comptroller of the Currency (OCC) is seeking, until June 30, 2022, comments on the renewal of the information collection on the market risk capital rule. Comments are also being sought, on behalf of the US Agencies, for the renewal of the information collection titled “FFIEC Cybersecurity Assessment Tool,” for which the comment period ends on August 01, 2022; here, the US Agencies being referred to are the Board of Governors of the Federal Reserve System (FED), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA).
The information collection on market risk capital rule (12 CFR part 3, subpart F) applies to national banks and federal savings associations with significant exposure to market risk; this includes the national banks and federal savings associations with aggregate trading assets and trading liabilities equal to 10% or more of the quarter-end total assets, or USD 1 billion or more. The rule captures positions for which the market risk capital rule is appropriate, reduces procyclicality in market risk capital requirements, enhances risk-sensitivity of OCC's capital requirements by measuring risks that are not adequately captured under the requirements for credit risk;, and increases transparency through enhanced disclosures. The rule enhances risk-sensitivity and includes requirements for the public disclosure of certain qualitative and quantitative information about the market risk of national banks and federal savings associations. This information collection is necessary to ensure capital adequacy appropriate for the level of market risk. The estimated number of respondents for the information collection is 19.
The information collection on cybersecurity assessment necessitates a financial institution to identify its inherent cyber risk profile based on technologies and connection types, delivery channels, online or mobile products and technology services, organizational characteristics, and cyber threats it is likely to face. Once a financial institution identifies its inherent cyber risk profile, it can use the Assessment's maturity matrix to evaluate its level of cybersecurity preparedness based on its cyber risk management and oversight, threat intelligence and collaboration, cybersecurity controls, external dependency management, and cyber incident management and resiliency planning. A financial institution may use the matrix's maturity levels to identify opportunities for improving its cyber risk management based on its inherent risk profile. The Assessment also enables a financial institution to rapidly identify areas that could improve the financial institution's cyber response programs, as appropriate. Use of the Assessment by financial institutions is voluntary. OCC is requesting comments on renewal of this information collection, which was developed by the US Agencies, along with the other the Federal Financial Institutions Examination Council (FFIEC) members, to assist financial institutions of all sizes in assessing their inherent cyber risks and their risk management capabilities.
Related Links
Keywords: Americas, US, Banking, Market Risk, Information Collection, Basel, Regulatory Capital, Reporting, Regtech, Cyber Risk, OCC, FFIEC, US Agencies
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
MAS Publishes Papers on Environmental Risk ManagementRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
