Payment Processors On CFPB Radar
Multi-Dimensional Risk Management™
Payment processors are required to perform various risk assessments and implement a risk management program in accordance with the requirements of their regulators, financial institution partners, and client base.
ORM automated risk assessment modules have multiple views into the core data at the heart of all risk assessments, including Product, Service and Line of Business perspectives as well as Process and Regulatory perspectives. The risk assessment process enables management to better identify and mitigate gaps in internal controls.
What’s more, you can extract risk assessments using core risk components such as credit, operational, and compliance. ORM provides a comprehensive Risk Assessment Module for all your risk assessment needs.
Risk Assessments Examples
Compliance Risk Assessments
Click for DetailsThe ORM platform includes a Compliance Library containing consumer protection regulations as well as industry standards. The integration of the Library with the Risk Assessment modules enables ORM to prepare a comprehensive analysis of Payment Processor compliance with laws, rules, regulations and standards, including Nacha, Regulation E and other governance impacting Payment Processors.
For the businesses that use the ACH Network, including banks, credit unions, and payment processors, Nacha compliance is essential to a successful compliance program. An annual risk assessment is not only required by Nacha but helpful to the business line.
Merchant-Client Risk Assessments
Click for DetailsAs recommended by regulatory guidance as well as Nacha, risk assessments of perspective merchants and clients should be performed prior to on-boarding. What’s more, it is expected that payment processors perform periodic risk assessments to assess and respond to adverse changes in a client’s risk management profile. ORM provides an automated solution for managing merchant-client relationships.
BSA/AML/OFAC Risk Assessment
Click for DetailsThe ORM methodology first considers the risk level that is inherent in the BSA/AML assessment categories of: a) product or service, b) types of clients that use the product or service, and c) geographies in which the product or service is offered. The purpose is to objectively measure the level of inherent risk by using a scorecard system. Once inherent risk is identified and documented, determine the control effectiveness and then the residual risk of money laundering, terrorist financing, and other illicit activity associated with the business’ products and services.
Fraud Risk Assessment
Click for DetailsThis Fraud Risk Assessment assists in identifying the risk profile and evaluating the business’ exposure to being used to further fraudulent activity. Understanding the Fraud risk profile enables our clients to apply appropriate risk management processes to the compliance program to reduce, transfer, or accept the risks identified in the Risk Assessment.
