Half of large US banks have risk issues, regulatory ratings show: Bloomberg

The news: A confidential assessment by the US Office of the Comptroller of the Currency (OCC) found half of the major banks it oversees have inadequate management of operational risks, including cyber threats and employee errors, Bloomberg reported.

The numbers: Eleven of the 22 large banks the OCC supervises had “insufficient” or “weak” management of operational risk, and one-third scored 3 or less in a 5-point scale for overall management, Bloomberg said citing sources familiar with the matter.

The context: Operational risk encompasses a wide range of potential threats beyond market and credit risks, and is a critical area of focus for regulators.

The evaluations add to regulators’ concerns about risk management following last year’s bank failures.