Methods and Practices: Managing Transaction Risk - Treasurers Trust Their Banks

This IDC Financial Insights report provides an update on security controls used to secure corporate banking online services, in light of the new Federal Financial Institutions Examination Council (FFIEC) guidance, recent court cases, and new primary research. FFIEC guidance and two court cases with differing opinions are prompting banks to examine the security controls they are using to protect their online corporate banking channels. IDC Financial Insights has conducted new research looking at attitudes of treasurers regarding the controls their banks offer and finds that they are mostly complacent in assuming that their banks have provided adequate protection. This report reviews differences in the findings of the court cases and how banks could interpret those results, as well as provides guidance on effective security controls that can be considered when reviewing compliance with FFIEC guidance.

"Although corporate clients are comfortable with the security solutions provided by their banks, there remains a need to continue to improve controls — both to keep pace with change and remain in compliance with 'commercially reasonable' controls and to keep out of the courtroom." — Jeanne Capachin, research vice president, Corporate Treasury and Spending Guide