According to the Office of the Comptroller of the Currency, banks must have "robust" systems in place to identify threats and vulnerabilities in their technology, as well as isolate key systems and records to protect against hackers looking to disrupt systems for a payout.
The OCC also warned banks in its semiannual risk report to be wary of third-party relationships, noting that bad actors are increasingly exploiting outside vulnerabilities to conduct "malicious cyber activities."
The OCC also stated that credit risk for banks remains moderate, owing to loan portfolios that have weathered the pandemic thanks to good risk management by banks and government relief programs. However, the OCC noted that banks face some challenges in assisting clients as some of these programs, such as the Paycheck Protection Program, come to an end, leaving banks with increased compliance responsibilities.
Concerning climate change, the OCC stated that it was continuing to work on developing a new climate risk framework for the national banks it supervises, which it intends to roll out first with the nation's largest and most complex firms.