Use Case: Central Cash Vault Risk Management
Cash by its nature is risky and costly. More than any other asset, cash is exposed to fraud, theft and accidental loss. At the same time, cash does not earn a financial return and it requires resources for protecting and controlling it. The analysis of cash must therefore always be two-dimensional and consider aspects of control and risk mitigation alongside the questions of efficiency and cost management. Efficient cash management is essential for the bank, not only to ensure proper cash flow forecasting and effective use of funds, but also for institutions that are beginning to mobilize deposits and withdrawals by electronic means. Although the principles of cash management remain the same, institutions must now meet more strict regulatory requirements, including liquidity restrictions, at both the branches and the central cash vault. Additionally, many institutions are also using alternative delivery channels and accessing new technology to increase their outreach. Management must consider the implications of new technology in their cash management practices to ensure that adequate cash is being maintained at all levels of the institution.
Who Should Assess the Risk: Chief Operating Officer, Chief Financial Officer, Central Cash Vault Manager,
Branch Administrator, Security Officer