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ARTICLE · 01 MAY 2025

OCC, FDIC Eliminating 'Reputational Risk' From Supervision, Examinations

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The OCC has removed "reputational risk" from its handbooks and guidance and the FDIC is moving to do the same.

United StatesFinance and Banking
Scott A. Coleman
Scott A. Coleman
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The OCC has removed "reputational risk" from its handbooks and guidance and the FDIC is moving to do the same.

The OCC's decision supports "the OCC's mission and its supervisory objectives to ensure that banks have appropriate and strong risk management processes for their business activities, treat customers fairly, and comply with applicable laws and regulations," the agency said, in announcing the move.

"The OCC's examination process has always been rooted in ensuring appropriate risk management processes for bank activities, not casting judgment on how a particular activity may fare with public opinion," said Acting Comptroller of the Currency Rodney E. Hood. "The OCC has never used reputation risk as a catch-all justification for supervisory action. Focusing future examination activities on more transparent risk areas improves public confidence in the OCC's supervisory process and makes clear that the OCC has not and does not make business decisions for

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