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More resources for national banks

Retail Risk Management and Classification

From a regulatory perspective, risk is the potential that events, expected or unanticipated, may have an adverse impact on a bank’s capital or earnings. To control risk and mitigate its impact on financial performance, all banks must have systems that identify, measure, control, and monitor risks. Strong risk management systems are especially important when introducing new products or services and during economic growth or recession. Follow the links on this page for regulatory resources related to retail risk management and classification.


AL=Advisory Letter

Detecting Red Flags in Board Reports: A Guide for Directors (October 2003)
Describes information generally included in board reports and highlights ratios or trends that may signal existing or potential problems

Risk Management of New, Expanded, or Modified Products and Services (OCC 2004-20, May 2004)
Outlines the processes national banks should follow to prudently manage the risks associated with new, expanded, or modified bank products and services

Risk Management of Outsourcing Technology Services (AL 2000-12, November 2000)
Covers risk assessment, service provider selection, contract reviews, and monitoring the service provider relationship

Third-Party Relationships, Risk Management Principles (OCC 2001-47, November 2001)
Covers risk management, security, privacy, and consumer protection policies related to third-party activities

Third-Party Risk (AL 2000-9, August 2000)
Emphasizes the importance of due diligence and control over risks arising from arrangements with third parties (e.g. vendors, brokers, or dealers)

Uniform Retail Credit Classification and Account Management Policy (OCC 2000-20, June 2000), Final Notice (Federal Register, June 12 2000)
Establishes standards for classification and account management of retail credit in banks and thrifts

Related News and Issuances
Publish DateIdentifierTitle
03/06/2015  OCC 2015-17, Deposit-Related Credit: Revised Comptroller's Handbook Booklet
02/11/2015  OCC 2015-15, Appraisals for Higher-Priced Mortgage Loans: Small-Loan Exemption Threshold Revision
07/01/2014  NR 2014-95, Agencies Issue Guidance for Home Equity Lines of Credit Nearing Their End-of-Draw Periods