IT Examiner School, Palm Springs, CA

General ACH risk

ACH transactions are usually considered one of the  higher risk EFT transactions, especially for the ODFI.

Credit Risk

Liquidity Risk

Operating Risk

Third party payment processor risk

• Risk tolerance for ACH activities not defined by the Board. • Insufficient Board reporting. • Lack of written policies and procedures. • Lack of compliance with enhanced authentication  requirements. • No underwriting or annual review of customer exposure  limits. • Lack of effective monitoring (anomaly detection, fraud,  changes in volumes, etc.).   ACH Exceptions Often Noted at Examinations