Operational Risks: Cyber, Fraud Risk Innovation & More

Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

## Episode Overview
This episode covers the OCC's Fall 2024 Operational Risk report, examining key areas of focus for financial institutions including cybersecurity, operational resilience, innovation, and fraud risk management.

## Key Topics Covered

### Cybersecurity
- Elevated operational risks due to evolving cyber threats and AI technology
- Importance of third-party risk management in the expanding cyber threat landscape
- Critical security measures including MFA, system hardening, and patch management
- New post-quantum computing encryption standards from NIST

### Operational Resilience
- Focus on mitigating disruption events and cyber incidents
- Case study from mid-2024 involving global disruptions from flawed software updates
- Importance of testing and validating resilience plans

### Innovation and New Services
- Banks' adoption of new technologies and fintech partnerships
- Cautious approach to AI and machine learning implementation
- Considerations for digital asset custody and cryptocurrency services
- Challenges of maintaining legacy systems while pursuing digitization

### Fraud Risk Management
- Evolution of fraud prevention strategies
- Importance of customer identification and verification
- Implementation of transaction verification and authentication controls
- Role of technology in flagging suspicious activity

### Third-Party Risk Management
- Continuous lifecycle approach to third-party relationships
- Risk management processes scaled to bank size and complexity
- Importance of ongoing monitoring as relationships evolve

## Resources Mentioned
- Credit Union Exam Solutions Incorporated
- Mark Treichel's Website: marktreichel.com
- "With Flying Colors" Podcast

## Contact Information
- LinkedIn: Mark Treichel
- Website: marktreichel.com

## Disclaimer
This podcast is educational and does not constitute legal advice. All opinions expressed are for informational purposes only.

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