On June 29, the Office of the Comptroller of the Currency (OCC) issued its Semiannual Risk Perspective for Spring 2020 (OCC Report). The OCC report sets out the key issues facing the banking system and the effects of the COVID-19 crisis on the federal banking industry. It presents data in four main areas: operating environment, bank performance, special risk topic and trends in key risks.
Those national banks and federal saving associations regulated by the OCC must identify and address those operational risks that may arise from the implementation of alternate control processes brought about in response to COVID-19, and the heightened cyber risk environment.
Operational Risks Related to COVID-19 Pandemic Impact and Response
Banks have responded swiftly and effectively to implement business continuity plans while maintaining their operations. However, new processes present potential risks and control considerations:
- Cybersecurity Vulnerabilities Associated with Teleworking Tools. Implementation of teleworking tools such as virtual private networks (VPN) and virtual conferencing services can increase cybersecurity vulnerabilities. Configure, secure and monitor these tools as…
