The Office of the Comptroller of the Currency on Tuesday identified five risk areas — including cybersecurity — that will be a focus for examiners in the agency's bank supervision operating plan for fiscal-year 2019.
The other areas of focus in the supervision plan will be commercial and retail credit loan underwriting, compliance with anti-money-laundering rules, management of consumer compliance changes, and internal controls related to product delivery.
The OCC said managers and staff in the agency's Committee on Bank Supervision operating units may use the plan to direct horizontal assessments of banks during the supervisory cycle.
The risk in cybersecurity will focus on operational resiliency with an emphasis on maintaining information technology systems and remediating identified concerns, the OCC said.
Commercial and retail credit loan underwriting also will focus on concentration risk management, credit risk management, and the allowance for loan and lease losses, including preparations for the current expected credit losses accounting rule.
Bank Secrecy Act compliance will emphasize determining whether anti-money-laundering compliance programs keep pace with changing risk environments and regulatory developments.
The OCC also is focused on the risks in "consumer-compliance-related change management process," with an emphasis on implementing specific regulatory requirements of the Home Mortgage Disclosure Act, the integrated mortgage disclosure requirements under the Truth in Lending Act and Real Estate Settlement Procedures Act, and the Military Lending Act.
The agency also is focused on internal controls and “end-to-end processes necessary for product and service delivery,” which may include looking at new or revised products or strategic partnerships.
The OCC said it will provide periodic updates about supervisory priorities through its Semiannual Risk Perspective published in the fall and spring.
