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When do I need to do a Risk Assessment? Have your policies and procedures changed with COVID-19?
by Mary Gilmeister, President, Macha
As technology and payments products evolve, so do fraud schemes, operational challenges, and regulatory requirements. Because of this ever-changing payment landscape, it is critical that financial institutions understand their risks and build a management program to control them.
According to the FFIEC, you should complete a Risk Assessment when:
- There are changes in technology;
- Software
- Processors
- New services
- There are changes in your operating environment;
- There are changes in the number or types of originators;
- There are changes in the products that you offer;
- There are changes in returns or charge-offs; and
- There are changes in personnel.
What are the findings?
- Lack of strategic planning and risk monitoring;
- Audits not keeping pace;
- Outdated agreements;
- Regulation E inconsistencies; and
- Other issues.
Need Help? Payment Advisory Resource and Macha have the following publications available for purchase:
PAR conducts more than 150 audits per year, so don't hesitate to call us at (800) 453-1843 and make an appointment!
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