Tuesday, July 23, 2019

The OCC Issues Booklet: “A Common Sense Approach to Community Banking”

Posted by Sharon August 9, 2013 12:34pm

Photo Credit: hin255

On June 13, 2013, the OCC issued a booklet titled, “A Common Sense Approach to Community Banking”.  The booklet was previously distributed to national banks and federally chartered thrifts, however, is now available on the OCC’s Website.  The booklet is a PDF document that is 21 pages and appears to contain some very useful information for community banks.  The booklet can be directly downloaded from their website.

In this booklet, the OCC focuses on three long-standing, underlying concepts:

  •  Accurately identifying and appropriately monitoring and managing the Bank’s risk
  • Plotting a shared vision and business plan for community banks with sufficient capital support
  • Understanding the OCC’s supervisory process and how the Bank may extract helpful information from the OCC’s process

Some of the topics discuss include the following:

  • Identifying Emerging Risk: Risk Assessment System
  • Aggregate Risk
  • Strategic and Reputation Risks
  • Direction of Risk
  • Relationship between Risk Assessment System and Enterprise Risk Management
  • Scenario Analysis
  • Relationship between Risk Assessment System and Strategic Planning
  • Capital Planning Process
  • Supervision by Risk
  • A Dynamic and Tailored Examination Process
  • Key Importance of the Portfolio Manager

If you are a Bank that is governed by the OCC, I would strongly recommend that you download and read this booklet as it is intended to help community banks and thrifts succeed.

If you are a Bank that is governed by another regulator, it wouldn’t hurt to read it too.  While the examination procedures may not necessarily be the same, it is good information that they are disseminating that may benefit your Risk Assessment System and Enterprise Risk Management as well.  

Happy Reading!!


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Sharon Geiger

Senior Quality Control and Review Specialist

Sharon Geiger has 27 years banking experience, 21 of which have been involved in internal audit. She has extensive knowledge of all aspects of the banking industry, with a particular emphasis on regulatory compliance and identifying risks and controls. As QCR Specialist, she performs Quality Control Reviews to ensure all workpapers and reports are completed in compliance with the firm's standards.

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