Which of the following is NOT recommended by the OCC for quality risk management?

The Office of the Comptroller of the Currency (OCC) emphasizes the importance of robust risk management practices to ensure financial institutions maintain high standards of safety and soundness. Each of the recommended strategies plays a crucial role in managing quality risk effectively; however, the internal reporting of Retirement Plan Loans is not one of those recommendations from the OCC.

Quality risk management practices typically focus on evaluating and mitigating risks before they impact the organization. For instance, pre-acceptance reviews help identify potential risks associated with accepting new accounts or clients. The use of account checklists ensures that essential steps in the account management process are not overlooked, facilitating a thorough and consistent approach to client onboarding or account servicing. Similarly, the selection of appropriate bank deposit products is crucial in managing the financial institution's exposure and ensuring that the products offered align with regulatory requirements and customer needs.

In contrast, while internal reporting of Retirement Plan Loans is certainly a critical area for monitoring, the specific focus of the OCC's recommendations is on proactive measures to manage risk rather than reporting on existing risks. Reporting can be valuable for tracking and analyzing outcomes, but the OCC’s guidance centers around preemptive quality controls rather than retrospective reporting mechanisms. Thus, the internal reporting of Retirement Plan Loans does not align with