Insider Activities

Risks Associated with Insider Activities

Examiners assess risk in relation to its impact on capital and earnings. From a supervisory perspective, risk is the potential that events, expected or unanticipated, may have an adverse impact on the bank’s earnings or capital. The OCC has identified nine risks for supervisory purposes: credit, interest rate, liquidity, price, foreign currency translation, compliance, transaction, strategic, and reputation. Each risk is defined in the "Bank Supervision Process" booklet of the Comptroller’s Handbook.

The risks most often associated with insider activities are reputation, credit, liquidity, and compliance risk.

Previous: Introduction Next: Reputation Risk