OCC Prioritizes Climate Risk

The Office of the Comptroller of the Currency has highlighted climate risk as a concern for banks:

Climate-related financial risks: The OCC continues its work to better understand climate- related financial risks in the context of safety and soundness, particularly as they relate to risks at large banks. During FY 2023, the agency will continue information gathering efforts and plan on conducting additional industry outreach. At the largest banks, examiners will monitor the development of climate-related financial risk frameworks and will engage with bank management to understand the challenges that banks face in this effort, such as data and metrics, governance and oversight, policies, procedures, and limits, strategic planning, scenario analysis capabilities and techniques, and incorporation of the frameworks into current bank risk management processes.

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