As reported by Bloomberg late last month, a leaked confidential assessment by the Office of the Comptroller of the Currency (OCC) has revealed that half of the major US banks have inadequate operational risk management frameworks, heightening the risk of cyber-attacks and employee errors.
The OCC's findings indicate that 11 out of 22 large banks under its supervision exhibit "insufficient" or "weak" operational risk management, contributing to about one-third receiving low overall management ratings. These management scores, as a part of the broader "CAMELS" rating system, are critical in determining regulatory scrutiny and capital requirements.
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