Banks face a more uncertain environment amid the war in Ukraine and need to shore up their risk management programs to gird against multiple negative scenarios unfolding at once, a top U.S. banking regulator said.
So-called tail risks—unlikely but highly impactful risk events—are a growing potential issue that financial institutions’ risk departments need to grapple with,
Michael Hsu,
acting comptroller of the currency, said Thursday at a conference hosted by the American Bankers Association.
“Russia’s invasion of Ukraine has affected tail risk as well as geopolitics,” Mr. Hsu said. “Greater caution and risk management vigilance is warranted today, perhaps more…
