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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

Risk Assessment

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  • Outdated agreements;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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