Like many people today, I wear a Fitbit to remind me to keep moving. As Fitbit technology has advanced, not only does it suggest that you take 10,000 steps in one day, it now suggests that 250 steps per hour should be taken between 9 a.m. and 6 p.m. At 10 minutes before the hour, my Fitbit will vibrate and remind me if I have not yet reached 250 steps for the hour. This periodic reminder will often cause me to stand up and take a stroll. But the concept is still the same, right? You can’t remain idle.
In banking, times are changing, but the concepts have remained the same. There are still risks of fraud, and there are still basic internal controls that should be in place to help prevent fraud from occurring. These controls include segregation of duties, rotation of duties, proper approvals, activity controls, and dual controls. By implementing basic internal controls, the risk of fraud occurring decreases dramatically.
Basic internal controls are not new concepts; however, sometimes periodic reminders are needed to revisit your current controls in place. So like a Fitbit, here is your reminder. Do your current controls reflect your risk tolerance? Has your internal control risk assessment been updated? Are internal audits completed to ensure the appropriate controls are in place and working properly?