OCC Releases Virtual Workshops for Community National Banks

The Code of Federal Regulations (12 CFR Part 30) provides that the Office of the Comptroller of the Currency (“OCC”) is required to establish “safety and soundness” standards with which national banks and federal saving associations are required to comply. Assessment of the satisfaction of these standards are made by examination of the financial institution, which is generally done in accordance with the Comptroller’s Handbook.

On February 7, 2022, the OCC released a schedule of free, virtual workshops that boards of directors of national community banks and federal savings associations can utilize “to support the safe and sound operation of community-based financial institutions.”   

An outline of the offered virtual workshops is as follows:

• Building Blocks for Directors: Keys to Success will be held on February 24, 2022, 1:00 p.m.–4:00 p.m. EST    

  • Objectives:

    • Learn about key and current issues impacting bank supervision.

    • Enhance understanding of board responsibilities, duties, and governance.

    • Learn about the tools senior management needs to provide information to the board.

    • Increase familiarity with strategic planning and enterprise risk management.

• Credit Risk: Directors Can Make a Difference will be held on March 8, 2022, 1:00 p.m.–4:00 p.m. EST            

  • Objectives:

    • Learn how to stay informed of changes in credit risk.

    • Identify reasons banks develop asset quality problems.

    • Understand board and management roles in credit risk culture.

    • Learn the importance of accurately risk rating loans.

• Operational Risk: Navigating Rapid Changes will be held on March 22, 2022, 1:00 p.m.–4:00 p.m. EST

  • Objectives:

    • Define major operational risks and the related key operational risk management processes.

    • Understand the oversight roles and governance responsibilities of the board.

    • Discuss business continuity and resiliency concepts and share "best practices" learned during the COVID-19 pandemic.

    • Outline the common methods and motives of internal fraud and discuss the role of the board in establishing a strong ethical culture.

    • Discuss and share "best practices" regarding the structure, organization, and oversight of a risk-based audit program.

    • Review methods of oversight of third-party vendors that perform or provide support to operational and business functions.

    • Understand the increased volume and sophistication of cyber threats and regulatory expectations for addressing cyber threats.

• Compliance Risk: What Directors Need to Know     will be held on  April 12, 2022, 1:00 p.m.–4:00 p.m. EST

  • Objectives:

    • Understand the critical elements of an effective compliance risk management program.

    • Review major compliance risks and critical regulations, such as the Bank Secrecy Act and the Equal Credit Opportunity Act.

    • Identify compliance red flags and hot topics.

    • Learn about common OCC examination findings related to compliance risk.

• Risk Governance: Improving Director Effectiveness will be held on May 12, 2022, 1:00 p.m.–4:00 p.m. EST

  • Objectives:

  • Enhance understanding of the OCC’s approach to risk-based supervision.

  • Increase familiarity with major risks in the financial industry.

  • Recognize common ways to identify, measure, monitor, and control risk.

  • Enhance understanding of strategic planning.

Financial institutions, their representatives and counsel should consider attending these seminars, and compare current policies and procedures against the workshops to ensure compliance.