Financial institutions accept, collect, and process a variety of payment instruments and participate in clearing and settlement systems. In some cases, financial institutions perform all of these tasks. However, independent third parties are increasingly involved in this process, introducing new risk management approach that affect the security of financial institutions.
Retail payment systems expose financial institutions to numerous risks, including legal, compliance, strategic, operational, credit, and liquidity. Depending on the complexity of retail payment system activity, the scope of the examination may require an integrated team approach that includes the knowledge, skills, and expertise of IT, credit, and compliance specialists.