What must financial institutions assess according to OCC 235?

Financial institutions are required to assess large-dollar payment system risks as outlined in OCC 235. This guideline emphasizes the importance of understanding and managing risks that can arise from large-value transactions, which are often more prone to significant systemic risk and operational challenges. Given that large-dollar transactions can involve substantial amounts of money and impact the stability and efficiency of payment systems, institutions must diligently evaluate these risks to ensure that they have adequate controls and measures in place.

This focus on large-dollar payment systems is crucial because failures or disruptions in these transactions can have widespread implications, affecting not just the financial institution involved, but also the broader financial ecosystem. Consequently, effective risk management strategies for these payments are vital for maintaining overall financial stability and consumer confidence.

Other options, while important aspects of risk management, do not specifically fall under the direct scope of OCC 235 as it pertains to the assessment of risks associated with large-dollar payment systems.