Managing Risk: Robbery Presented by Allen J. Stendahl New Risks - - PowerPoint PPT Presentation

Managing Risk: Robbery

Presented by Allen J. Stendahl

New Risks Continue to Evolve

• Plastic card fraud
• Counterfeit documents (Nigerian scams)
• Identity theft
• Indirect lending

Robbery is a Constant

• As old as depository institutions

themselves

• Frequency has remained constant
• Severity has increased

Credit Unions vs. Commercial Banks

• Average robbery loss is higher in credit

unions

• Tellers’ cash amount is greater in credit

unions

• Vault cash is taken more often in credit

union robberies

Why?

• Greater emphasis on member service
• Historically low or no robbery deductible

under the bond

• Little motivation to control teller cash

exposure

What CU’s Have Done…

• Surveillance systems
• More sophisticated alarm systems
• Bandit barriers
• Bait money/dye packs
• Education and training

Robberies Still Occur

• Deterrence and apprehension/recovery
• Do not address mitigation
• Exposure still exists
• Must reduce the amount of cash available

Changes in Bond Market

• Deductible amounts are increasing
• Bond is experience rated

What Should CU’s Do?

• Regularly review teller’s cash needs
• Reduce cash levels where appropriate
• Split teller’s cash between an upper and

lower drawer

• Secure excess (vault) cash

Employee & Member Safety

• Liability exposure can exceed robbery loss

exposure

• Education and training are critical
• Conduct robbery training regularly
• Require all employees to attend

What Else Can CU’s Do…

• Robbery warning lights
• Comprehensive opening and closing

procedures

What about those Kiosks/Teller Pods?

• Becoming more popular
• More member friendly
• Reduce the robbery exposure
• Create new exposures

Kiosks, cont.

• Employee and member safety an issue
• Identity theft exposure increases
• What must you do?

Kiosks, cont.

• Keep a small amount of cash on hand

(include bait money)

• Keep terminals secure
• Always log off terminals
• Avoid allowing a single employee to staff

the facility

Summary

• Credit unions will always be dispensing

cash

• Will always be a robbery target
• Higher deductibles and experience rating

= greater impact on bottom line

• Minimize impact by reducing tellers’ cash

and total premises cash

Contact Information

• Allen J. Stendahl

Allen.stendahl@alliedsolutions.net

• Patrick Touhey

Patrick.touhey@alliedsolutions.net

Proud to be a NAFCU Services Preferred Partner. To learn more, please visit www.nafcu.org/allied