Managing Risk in Retail Payment Systems 

(A 2-day Primer on Identifying and Managing Risks in Retail Payment Systems)

Banks accept, collect and process a variety of payment instruments and take part in various clearing and settlement systems. These systems are not always provided within the bank itself, but may be offered by outside parties or even the central bank. This intensive two-day course helps you navigate through the complex world of retail payments and lets you develop an effective risk management regimen in this vital banking area.

This 2-day course provides a detailed overview of assessing and managing risks in Retail Payments area of bank operations.

What is the curriculum focus?  

Over the course of the 2 days, we will deal with the following elements.

• Definition of a payment system - Payment systems are critical to all bank operations. A generation ago cheques, mail & telegraphic transfers were the backbone of all payments. That has changed today we are faced with a confusing array of terminologies all related to payment systems. We cover what they are and what do they mean.
• Payment system structure, clearing & settling. The course reviews the key generic payment systems, how they work and how the banks settle with one another. The course the focuses on Retail Payment systems, what they are, their key features and how they operate. This then forms the basis for examining the risks in each of these systems.
• Retail payment system risks . We deal with the definition of risk within retail payment systems covering strategic risk, reputational risk, credit risk, liquidity risk, legal (compliance) risk, operational (transactional) risk within the context of the previously defined retail payment systems. Included is a more detailed examination of specific retail payment systems risks and controls.
• Assessing risk in retail payment systems. Identification, Assessment, Monitoring, and Mitigation/Control
• Identifying most potentially adverse risks, and assessing banks vulnerability to these risks through an “Environmental Survey” and a “Technology Inventory” leading to the completion of a Risk Assessment
• Identifying appropriate indicators that provide early warning of an increased risk of future losses.
• Ensuring that all new retail payment system products, activities, processes and systems are subject to adequate assessment procedures regarding operational risk before they are introduced/ implemented.
• Internal practices to control retail payment systems risks such as setting & monitoring risk limits; maintaining safeguards for access to, and use of, ensuring that staff have appropriate expertise and training, regular verification and reconciliation of transactions and accounts.
• Managing risk in retail payment systems. The risks and their management in specific systems including specific risk examination measures; this includes all the typical retail systems such as cheques, EFTPOS, credit card networks, card based payments such as credit cards, debit/ATM cards, card PIN issuance, merchant acquiring, automated clearing houses and Internet and telephone-initiated ACH.

Who should attend?

The course has been specifically designed for the following banking industry professionals:

• Retail Business Unit Managers
• Branch Managers
• Financial Controllers
• Risk Managers
• Operational Risk Managers
• Operations Managers
• Senior Operations Staff,
• Auditors and Compliance Officers
• Regulators/Inspectors
• Staff Training Managers

 

For specific information contact us at courses@citadeladvantage.com