Why FIs Must Conduct Both Risk Assessments and Security Reviews at All Key Facilities
In the ever-evolving threat landscape faced by financial institutions, safeguarding
assets, people, and data requires more than just installing cameras or setting up
firewalls. It demands a comprehensive, layered approach. Two fundamental yet distinct
tools in this approach are risk assessments and security reviews.
Though these terms are often used interchangeably, they serve different purposes—and
FIs must implement both at all critical locations:
- people centers
- data centers
- branches
- on-site ATMs
- off-premises ATMs
What is a Risk Assessment?
A risk assessment is a strategic process used to identify, analyze, and evaluate
potential threats and vulnerabilities that could impact an asset or operation. It helps
organizations prioritize risks based on likelihood and impact, enabling more informed
decision-making about where to allocate resources.
In the context of the financial sector, a risk assessment might examine:
- The likelihood of an armed robbery at a branch
- The risk of insider threats at a data center
- The vulnerability of off-premises ATMs to hook and chain events or physical
tampering - Environmental threats like flooding or power outages
The output of a risk assessment is typically a risk matrix and mitigation roadmap,
helping stakeholders determine which threats need immediate action and which can be
monitored over time.
What is a Security Review?
A security review (also called a security audit or site inspection) is a tactical evaluation
of the current security posture of a specific location. It involves physically inspecting and
assessing the effectiveness of security controls already in place—things like cameras,
access control systems, alarms, lighting, barriers, and procedures.
For example, a security review of a bank branch might include:
- Verifying the presence of security countermeasures based on the risk profile
- Inspecting camera angles and coverage blind spots
- Evaluating whether teller line design supports safe egress during a robbery
- Testing badge access logs and door alarm systems
Where the risk assessment asks, “What could go wrong?” the security review asks, “Are
we prepared if it does?”
Why FIs Need Both – at All Facilities
- People Centers (Operations Hubs)
These often-overlooked facilities usually hold sensitive data and may have high
volumes of foot traffic. A risk assessment can uncover social engineering risks or data
theft concerns, while a security review ensures physical access controls and visitor
protocols are effective. - Data Centers
Mission-critical environments that require a zero-failure mindset. A risk assessment
identifies cyber-physical risks (e.g., HVAC failures, power disruptions, sabotage), while
a security review ensures that racks are locked, fire suppression is in place, and video
monitoring is actively maintained. - Branches
Branches are front-line, customer-facing environments. A risk assessment considers
crime rates in the area, cash exposure, and customer aggression trends. A security
review confirms teller barriers are intact, duress systems work, and vaults meet
regulatory specifications. - On-site ATMs (adjacent to branches)
Here, a risk assessment helps determine whether the ATM location is prone to after-
hours vandalism or logical/physical attacks, while a security review checks lighting,
surveillance, and tamper-evident protocols to protect machines. - Off-premises ATMs
These are the most exposed and often least protected assets. A risk assessment
evaluates neighborhood crime stats, distance from response teams, and physical
isolation. The security review ensures enclosures are intact, cameras are functional,
and machines are not being accessed improperly.
Final Thoughts: An Integrated Security Program
FIs that rely solely on security reviews risk being reactive addressing only what’s visible
or recently failed. Those who perform only risk assessments may develop plans that
never touch ground reality. The combination of both provides a full-spectrum view—from
macro-level risk insights to micro-level operational checks.
By embedding both processes across all facilities, FIs position itself to not only defend
against today’s threats but to adapt to tomorrow’s. In finance, trust is currency—and
nothing protects it more than proactive, comprehensive security.