How to Conduct an ACH Risk Assessment and Develop an Effective ACH Risk Management Program (November 17-18, 2022) – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–Added ‘Conducting an ACH Risk Assessment and Developing an Effective ACH Risk Management Program’ training course ResearchAndMarkets.com Offer.

As a financial institution, third party service provider (TPSP), or third party service provider (TPS) that processes ACH transactions, you may be exposed to a variety of risks. Risks exist in the ACH payment system, as there are in all payment systems. The risks to be examined are operational, credit, compliance, fraud, return and reputational risk. Under the Nacha Operating Rules, financial institutions are required to assess and manage all ACH risks, which includes developing a risk management program. Most ACH risks can be mitigated through appropriate due diligence for all originating customers and strict adherence to ACH underwriting and lending policies, including oversight of ACH activity.

A recent change to the Nacha Operating Rules addresses TPS and “nested” TPS (effective September 2022) and identifies the existence of TPS (and nested TPS) that require an ACH risk assessment for ALL third-party senders (nested or not) require. In addition, the rule change includes the ODFI’s commitment to agreements with TPS and their “nested” TPS. Details of the ODFI’s responsibility in relation to the TPS registration requirement to include the “nested” TPS and how this can be done to remain compliant with this change.

Why you should participate:

This two-day virtual seminar/workshop will identify the areas of ACH risk that ODFIs and RDFIs face when creating, receiving or processing ACH transactions. ACH Risk awareness and responsibility remain with the ODFI even if these activities are outsourced to third parties. Discussion of the ODFI risk management requirements from the Nacha Operating Rules Book (Articles 1 and 2) such as due diligence, exposure limits, testing and monitoring (to name a few), as well as the use of the SEC Code by the Originator or TPSP or TPS specifies specific requirements and guarantees for risk management.

This ACH Risk Assessment seminar/workshop provides the details for the TPS and ‘nested’ TPS performing their ACH risk assessment due to the recent update of the Nacha Operating Rules with ‘Roles and Responsibilities of Third Party Senders (TPS)’. valid from September 2022.

During this two-day event, participants will engage in a hands-on activity (using the worksheets provided) where they will take part in “assessing the risk” of fictional companies and third parties to understand the importance of due diligence (KYC – Know Your Customer). determine. including setting and enforcing exposure limits.

As a financial institution, your ACH policies for creating and receiving ACH records go a long way in managing your ACH risk. As part of the Nacha operating rules, the exposure limits (which are set and enforced) should be reasonable based on the risks of each customer (the originator). By assessing the risk with each originator and identifying potential companies that may need additional measures to mitigate the risk they pose based on the type of business they are in and/or the type of the transactions they send.

In addition to the Nacha operating rules, financial institutions should leverage the guidance provided by FinCEN, FFIEC and OCC to develop an ACH risk management program that reflects the nature and complexity of their operations. This workshop will identify these issued guidelines and provide resources for effectively managing ACH risk in the future.

Details of the Nacha operating rules for conducting an ACH risk assessment and developing an effective risk management program for network participants who are required to perform this task are covered. The trainer will outline the key components of an effective ACH risk management program while participating in a fictional scenario and developing that program. ACH policies and what they mean, reporting to the Board of Directors regarding your ACH program, and third-party registration requirements (per Nacha) for the ODFI are included. Also, the details for the NEW Nacha rule change to “TPS – Roles and Responsibilities” – effective September 2022.

This virtual seminar/workshop (via two-day webinar) will be an adventure for all participants as we assess risk based on individual companies and the business they operate in, and then develop an ACH risk management program during a fictional scenario ( this will help to outline the key elements of ACH risk management).

Register today! A must-attend 2-day virtual seminar/workshop!

Learning goals:

  • Discover how the ACH network works (Overview of ACH, how it works, with SDA (Same Day ACH functionality included))

  • Identify the Nacha operational rules to apply when conducting an ACH risk assessment

  • Development of an effective ACH risk management program using the information provided (during a fictional hands-on activity)

  • List the different types of ACH risks and mitigation opportunities

  • Define what is required for a successful ACH risk management program

  • Importance of consistent monitoring of the entire ACH program

  • Importance of reporting details of your ACH program to the Board of Directors

  • Use Nacha to determine ODFI registration requirements

  • direct access registration

  • TPS (nested or not) registration

  • Contact information for the ACH Contact Registry

  • Summarize the details of the NEW Nacha Operating Rules Change for ACH Risk Assessments and the TPS (including the “nested” TPS).

Who benefits:

All payment professionals working in the ACH network will benefit from this course; These individuals may include operations, compliance, AR/AP, payroll, risk management, auditing, legal counsel, management, risk officers, and AAPs.

Main topics covered:

DAY 01 (8:00 AM – 2:00 PM PDT)

8:00 am – Registration begins

  • Overview of “How the ACH Network Works” and outlines the Nacha operating rules for conducting an ACH risk assessment and developing an effective ACH risk management program. Identifying the roles and responsibilities of the participants helps identify the key elements of the ACH risk assessment.

  • Define the different types of risk and mitigation opportunities. ACH risk affects ODFI and RDFI, 3rd party and 3rd party providers.

  • Overview of the recent Nacha operational rules change addressing TPS and “nested” TPS (effective September 2022) that identifies existence and requires an ACH risk assessment for ALL 3rd party senders (nested or not). In addition, the rule change includes the obligation of the ODFI regarding the TPS registration requirement to include the “nested” TPS. Included are “defining” a TPS and a “nested” TPS.

10:30 – 23:30 – LUNCH BREAK

11:30 pm – Seminar/workshop summaries

Begin the “hands-on” process of a step-by-step originating company and/or third party provider (TPS) ACH risk assessment using fictional companies and a TPS (and “nested TPS”) and introduce the key components within such a program . Includes details from guidance issued by FinCEN, FFIEC and OCC and discussion of what is required for a successful ACH risk management program and outlines guidance from FinCEN. Resources for workshop participants will be shared to help with future ACH risk management programs.

DAY 02 (8:00 AM – 2:00 PM PDT)

08:00 – Summaries of the workshops

Summary from the previous day (with all the discussions and progress made during the practical activity). Proceed with hands-on activity to develop an ACH risk management program for a “fictional scenario” using the previous day’s companies/TPS for the ODFI program (including the RDFI perspective on receiving and processing ACH transactions).

10:30 – 23:30 – LUNCH BREAK

11:30 pm – Seminar/workshop summaries

  • Discover the NEW rules change that also requires third-party providers (and “nested” TPS) to perform an ACH risk assessment. Details will be covered as we proceed with a fictional TPS and a “nested” TPS while adhering to Nacha operational rules requirements.

  • Description of the requirements of the ODFI and the registration of TPS and “nested” TPS and the elements of this information required on nacha.org. Discussion of other registration requirements for the ODFI.

  • To effectively complete an effective ACH risk management program, review checklists to ensure all key components are included. In addition, the importance of consistently monitoring the entire ACH program (an ongoing effort) and reporting details surrounding the ACH program to the Board is discussed.

More information about this training can be found at https://www.researchandmarkets.com/r/2tg4ch

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