External Theft and Fraud Risks in Retail Banking PPT

This PPT slide, part of the 92-slide Unlock the Power of Operational Risk Management PowerPoint presentation, outlines significant risks associated with retail banking, specifically focusing on external theft and fraud. It categorizes these risks into 2 main types: external theft/robbery from branches and transports, and external electronic theft and fraud, which includes hacking, phishing, and other cyber threats.

For each risk type, the slide details direct impacts. In the case of external theft, the consequences include the need to write down stolen assets, the replacement costs for these assets, and the financial burden of overtime for in-house staff who manage the aftermath. There are also implications for customer compensation if funds or deposits are compromised. Regulatory fines and potential court-imposed damages add to the financial strain, alongside legal fees and the loss of recourse regarding collateral or guarantors.

The section on external electronic theft mirrors these concerns, emphasizing similar write-downs and replacement costs. It also highlights the ongoing need for in-house staff to implement controls and safeguards against such threats. The slide further notes that both types of risks can lead to significant legal expenses and regulatory penalties.

Past external events are listed for context, showcasing real-world incidents that have affected various banks. This historical perspective serves as a cautionary reminder of the tangible impacts these risks can have on financial institutions. The slide effectively communicates the multifaceted nature of these risks and underscores the importance of robust risk management strategies in the retail banking sector. Understanding these risks is crucial for any organization looking to fortify its defenses against theft and fraud.

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Risk Management Operational Risk