Collateral & Safekeeping

Use Case for Assessing Risk on Collateral & Safekeeping

Why assess the risk? Banks still occasionally hold tangible items of value as collateral for loans or in safekeeping as an accommodation for short periods of time. It is essential that the bank minimize its risk by providing proper internal controls, operating procedures and safeguards to protect against claims arising from mishandling, negligence, mysterious disappearance or other unforeseen occurrences.

Who should assess the risks? Chief Operating Officer, Operations Managers, Teller Supervisors, Cash Management 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.