You are here: Home \ Services \ Financial Institution Services \ Risk Management Checklist

Risk Management Checklist

Use this checklist to review your bank-related risk management processes and procedures to verify that you have the controls in place to protect your organization’s finances. Review this information on a regular basis.

Account structure

  • Minimize number of accounts to reduce the risk of fraud
  • Segregate accounts at greater risk
  • Use unique serial number ranges for specific purposes instead of additional accounts
  • Convert paper-based payments to electronic payments

Internal controls

  • Dual authorization procedures should be used for the following transactions: Online ACH, ACH/NACHA/EDI file transmissions, wires and check automation
  • Review Internet security regularly and validate best practices
  • Protect all IDs and passwords
  • Review transactions before they leave the company
  • Conduct surprise audits
  • Never sign checks in advance
  • Review and update signature cards annually

Check supply

  • Use a trusted, established vendor
  • Use a unique check style for each account for easy differentiation of payments
  • Incorporate security features into your check design
  • Monitor check orders and inform your supplier if checks are not delivered in a reasonable time
  • Use secure storage area with controlled access for your checks and check printing equipment

Staffing

  • Limit authorization to employees who need it
  • Segregate duties clearly within the accounting department
  •  Review system access privileges for all employees regularly, including vendor creation
  • Provide education on phishing and other external dangers

 

Bank services that help you reduce risk: Paper transactions

  • Positive Pay, with default of return or pay
  • Teller Positive Pay
  • Reverse Positive Pay
  • Check Block — stops all checks from debiting your account
  • Check safekeeping -truncate your cancelled checks
  • Lock Box Services – segregation of duties

ACH transactions

  • Debit Blacks – stop all ACH originators from debiting your account
  • Debit Filters ensure only authorized originators can access your account up to a predetermined amount
  • ACH Guidance Lines – designed to validate files based on customer needs

Control transactions

  • Use Internet banking to review account daily
  • Reconcile daily/monthly (separate duties between staff that issue payments vs. those that reconcile)

Onsite Deposit Manager (electronic check imaging) transactions

  • Create procedure to void and secure checks once images are deposited
  • Shred deposited items after predetermined timeframe