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.
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Keywords: Americas, US, Banking, Market Risk, Information Collection, Basel, Regulatory Capital, Reporting, Regtech, Cyber Risk, OCC, FFIEC, US Agencies
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