BUSINESS OFFICE RISK RATING CRITERIA & ASSIGNED WEIGHT

S/N Rating Criteria Weight Major considerations in determining Risk Ra

% a

Teller and other staff

1 Fraud (Internal & External) over last 12 months 15.00 Fraud

External Auditors
2 Regulatory Compliance Issues 15.00 Report

Location of BO e.g.
Market Area, Barracks,
Enclosed
Plaza/Hotels/Offices,
3 Enviromental Safety 5.00 Highways etc

Numbers and Level of

4 Service Issues/Customer Complaints 5.00 customer complaints

Quality & Experience of

5 Branch Staffing- Quality and Quantity 10.00 BOM/CO/BM

GL Rating for the office

(Average of last 6
6 GL Ratings 5.00 months)
7 Previous Audit Rating/Level of Control Exceptions 10.00 Overall Audit Rating

Size of the Business

Office (Large, Medium,
8 Branch Size 5.00 Basic)

Total number of Risk

9 Credit Losses and Deliquency 10.00 Asset

Total number of Income

leakege discovered in 6
10 Income Leakages 5.00 months

No of
ATM/Teller/Vault
11 Cash Shortages 5.00 differences

12 Expense Violations 5.00 Cash Advance Violation

Any record of robbery

13 Robbery Attack 5.00 attack in the past
100.00
 NAME OF BUSINESS OFFICE:
siderations in determining Risk Rating as High (3 Points), Medium (2Points) or Low (1 point)

b c d e

Industry general
fraud level in the
Integrity Test failures Credit fraud and abuse location

KYC Compliance
Violation
Central assessable by
Bank/Regulators Penalty paid for Internal Audit monthly KYC
Report violations exceptions Rating

Security assessment of
Functionality of the Town, City and Proximity of the
equipments in BO State where office is office to police Business Impact
e.g. Fire Alarm etc located station/barracks etc Analysis

Incidence of long
Frequency and Total number of customer queue & Total number of
volume of PAL Dormant Size of the banking unscanned and old
reversals accounts(Attrition Rate) hall customer mandates

Proper Segregation
No of Disciplinary Total no of staff with of Duty and staff
issue against the less than 24 months Total no of vacancy rotation in the
BM/BOM/CO experience in the office Branch

Long outstanding
No of Open Items in Items in GL No of GL accounts
GL Unproofed accounts Unresolved out of proof
Previous Audit & Audit Compliance
Control Exceptions Volume of overdue Certificte
not regularised exceptions submission

Presence of
Presence of other Resident Control
functional units eg. Officer or
Available resources in Ebanking, closeness to
Volume of the business office CMC,ZPC,MICR Cluster Control
transcations (Printer,Copier,etc) etc Office

Total no & value of Quality and

Credit write offs in the experience of staff Expired OD and
Number of PDOs in office in the last 12 in the office on Temporary
the Business Office months credit appraisal overdrafts

Total amount of
Income Leakage
discovered in 6 Lending and Deposit
months Rate Infractions

Value of Cash Total value of shortages

Differences recorded written off in previous
in 6 months FYE

Asset
No of Expenses not Expenses without Optimization/Total
Expense approval submitted to ICD for pre supporting number of Idle
violations disbursement review documents assets in the office

Availability of Adequacy of
Availability & Availability & Chubb Safe and security personnel
functionality of Functionality of armed police in the Business
CCTV in the office Burglary alarm system adequacy Office
Low (1 point)
Risk Rating (H, Risk Rating
Summarized Position of Major M or L) Score (3, 2 or 1)
f Considerations

Volume of PEPs and other

High Risk Accounts in
the location

Proximity of alternate
location/site in time of
disaster (Disaster
Recovery and Continuity
of Business Plan

Total number of
uncollected customer
chequebooks & ATM
Cards

Compliance status with

Annual Leave
Plan/Adequacy of back-up
arrangement

Long outstanding items in

suspense accounts/Transit
accounts
Total number of staff on
recovery suspension in
the last 6 months

Compliance with Expense

Budget
Weighted Risk
Rating
=C4*K4/3

0.00

0.00

0.00

0.00

0.00

0.00
0.00

0.00

0.00

0.00

0.00

0.00

0.00
0.00
 HEAD OFFICE DEPARTMENTS RISK RATING CRITERIA & ASSIGNED WEIGHT
S/N Rating Criteria Weight Major considerations in determining Risk Rat

% a

1 Fraud and Operational Losses 15.00 Incidence of fraud

Accuracy and Prompt

rednition of relevant
2 Regulatory Compliance Issues 15.00 regulatory returns

Level of complaint by
internal and external
3 Service Issues/Customer Complaints 10.00 customers

Quality & Experience of

4 Proper Staffing - Quality and Quantity 10.00 staff

GL Ratings for Operations Units & General Record GL Rating for the office
Keeping/accountability for assets in custody for Non (Average of last 6
5 Operations Units 15.00 months)

6 Previous Audit Rating/Level of Control Exceptions 10.00 Overall Audit Rating

Exceptions from
7 Physical Security & Assets Protection 5.00 Security Sweeps
 Availability of suitable
system
8 Availability of relevant tools and applications 5.00 pplications/software

9 Expense Violations 5.00 Cash Advance Violation

Domestication/Awareness of Relevant Policy & Number of qualifying

10 Procedures 10.00 policies domesticated
100.00
D WEIGHT NAME OF HEAD OFFICE DEPARTMENT:
iderations in determining Risk Rating as High (3 Points), Medium (2Points) or Low (1 point)

b c d e

Write
offs/Provisioning Other financial and non
rreequirement financial losses

Regulatory record
keeping and response Central
time to enquiries by External Auditors Bank/Regulators Penalty paid for
regulators Report Report violations

Compliance status
with agree SLA/TAT
on service provision
by the Unit

Compliance status
with Annual Leave
Proper Segregation of Plan/Adequacy of
Total no of vacancy Duty and staff rotation back-up Staff Training and
in the office in the Unit arrangement awareness session

Long outstanding
No of Open Items in Items in GL No of GL accounts
GL Unproofed accounts Unresolved out of proof

Previous Audit & Audit Compliance

Control Exceptions Volume of Overdue Certificte
not regularised Exceptions submission

Incidence of theft or loss

Availability of of staff or bank's assets
secured cabinets in the Department
 Quality and integrity of
Knowledge base and alternative
level of effective use applications/manual
of the applications processes in use

Asset
No of Expenses not Expenses without Optimization/Total
Expense approval submitted to ICD for pre supporting number of Idle
violations disbursement review documents assets in the office

Level of Policy
awareness by the staff Incidence of policy
members infraction
OF HEAD OFFICE DEPARTMENT:
Low (1 point)
Risk Rating (H, Risk Rating
Summarized Position of Major M or L) Score (3, 2 or 1)
f Considerations

Internal Audit exceptions

No of Disciplinary issue
against the unit's staff

Record Keeping standard

and accountability for
assets in custody
Compliance with Expense
Budget
Weighted Risk
Rating
=C4*K4/3

0.00

0.00

0.00

0.00

0.00

0.00

0.00
0.00

0.00
0.00
 SUMMARY SHEET - RISK RATING STATUS
Total Risk Weighted Risk
S/N Business Office/Head Office Department Rating Scores Rating Score
1
2
3
4
5
6
7
8
9
Risk Rating
(H, M or L)