When asked what would be considered the big industries in the world, people generally think of oil and gas, real estate, construction and technology. In addition to these business sectors, the financial industry is almost always mentioned. The financial industry is one of the most important and controversial industries in the world. Banking institutions are a large part of the financial industry and they must meet many federal and state regulations. Banking institutions house incredibly sensitive information about both their business and their customers, so it is crucial that rules and procedures are in place to keep all information secure. There are many laws and regulations with which banking institutions must comply. One of the best ways to ensure regulatory compliance is for a bank to hire a third-party organization to audits its processes and procedures. Third-party auditors and risk assessment providers may provide any number of assessments as part of their services, but below are a few of the most common bank risk assessments and audits –

Bank Risk Assessment: At its most basic, a bank risk assessment is a documented review and analysis of the bank's systems, processes, applications, etc. to determine what the risks are and what can be done to mitigate these risks. A Bank Risk Assessment should focus on securing information, both electronic and paper-based. The most important function of bank risk assessments is to understand that risks do exist and that measures must be taken to mitigate those risks. Bank risk assessments should be viewed as an integral part of the bank's overall security program and strategy.

GLBA Audit: The GLBA audit corresponds to the Gramm-Leach-Bliley Act. The Gramm-Leach-Bliley (GLBA) Financial Modernization Act of 1999 was written to protect the privacy of consumer information held by financial institutions, service providers and other third party vendors. The GLBA requires companies to give consumers privacy notices that explain the institutions’ information-sharing practices and to protect information collected about individuals. According to GLBA, the institution should be ensuring the security and confidentiality of customer information and records, protecting the security and integrity of the information against anticipated threats or hazards and protecting against unauthorized access to or use of the information, which could result in substantial harm or inconvenience to the customer.

Wire Transfer Audit: Financial Institutions use wire systems to transfer funds among themselves and with their customers. The funds transfer operation (wire room) is responsible for originating, transmitting and receiving payment orders. Wire transfer audits usually review the policies, procedures and bank’s controls regarding the approval and execution of wire transfer transactions. A wire transfer audit also determines if appropriate bank employees are assigned authority and responsibility for approving, executing, and verifying authorization for wire transfers.

Banks are important to the well-being and safety of the national economy, as well as each person’s individual financial future. There are many regulations in place to ensure that banking institutions keep you personal and financial information secure. From audits and assessments, it is important to ensure that your banking institution is compliant with all regulations.