OCC Updates Risk Assessment System Guidance

The OCC today updated its Comptroller’s Handbook to include new information regarding its risk assessment system, clarifying several concepts and definitions and providing further guidance for examiners.

The guidance clarifies the relationship between the risk assessment system and the Uniform Financial Institutions Rating System (CAMELS), reiterating that the RAS provides both a current and prospective view of a bank’s risk profile when assigning CAMELS ratings. The OCC also revised the definition of “risk” to apply to all categories and include its impact on a bank’s current or projected financial condition or resilience.

Other updates include the addition of a new “insufficient” category to the quality of risk management assessment and the inclusion of quantitative and qualitative requirements for assessing strategic and reputational risk.


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