Use Case for Assessing Risk on Cash Control
Why assess the risk? Every bank must maintain a certain amount of U.S. currency on hand. To avoid having excess non-earning assets and to minimize exposure to misappropriation and robbery, the bank should establish a policy to maintain cash balances at the minimum levels necessary to serve its customers. The amount will vary from bank to bank depending on anticipated needs of customers, with a reasonable allowance made for unusual demands. Cash items are checks or other items in the process of collection that are payable in cash upon presentation. A separate control of all such items usually is maintained on the bank’s general ledger and is supported by a subsidiary record of individual amounts and other pertinent data.
Who should assess the risks? Chief Operating Officer, Chief Teller, Chief Financial Officer, Controller, Accounting Mgr., BSA Officer
How to assess the risk: Rate the KRIs to determine if a threat would successfully exploit a vulnerability and to justify expenditures to implement countermeasures to protect the bank’s assets or reputation. Use the “Focus Risk Assessment” tool for in-depth analysis of risks and mitigation techniques.