The Office of the Comptroller of the Currency (OCC) has released Bulletin 2026-13, reinforcing expectations for banks to strengthen risk management practices and governance frameworks in an increasingly complex financial environment.
According to the bulletin, banks are required to maintain robust risk identification, measurement, monitoring, and control mechanisms across all key areas, including credit, operational, market, and compliance risks. The regulator emphasises that risk management should be integrated into strategic decision-making rather than treated as a separate compliance function.
A key focus of the guidance is on board and senior management oversight. Institutions are expected to ensure clear accountability, effective internal controls, and strong governance structures to manage evolving risks. Leadership involvement is considered critical in maintaining a sound risk culture.
The bulletin also highlights the importance of adapting risk management frameworks to emerging challenges, such as technological advancements, cybersecurity threats, and changing market conditions. Banks are encouraged to adopt forward-looking approaches, including scenario analysis and stress testing.
From a compliance perspective, institutions must ensure that policies, procedures, and systems are regularly updated and aligned with regulatory expectations. Continuous monitoring and periodic reviews are essential to maintain effectiveness.
From a risk management standpoint, the guidance underscores the need for a proactive, enterprise-wide approach to managing risks, ensuring resilience and stability.
The development reflects the OCC’s ongoing efforts to strengthen the safety and soundness of the banking system.
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