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Federal Reserve Board of GovernorsCourse Description forRemote Deposit Capture Clinic(S&R Technology Lab)Last Revised: June 2009[Page Break]
STREAMSupervision Technology RisksEducate, Analyze and ManageFederal Reserve SystemRemote Deposit Capture Clinic (S&R Technology Lab)The Board of Governors of the Federal Reserve System is proud to offer technology-relatedcourses developed and hosted by the S.T.R.E.A.M./Technology Lab at the Federal ReserveBank of Chicago, Chicago, Illinois. For over nine years, the S.T.R.E.A.M./Technology Lab hasprovided unique value in examiner training by combining lectures with hands-on exercises.The exercises reinforce concepts by allowing participants to interact with various applicationsoftware and/or operating systems. Each participant has a dedicated PC in the state-of-the-artclassroom, while the lab is outfitted with many vendor applications, operating systems, andsecurity appliances widely used in the financial industry.Type of Participant TargetedThe course will be of interest to IT examiners of all experience levels and safety-andsoundness examiners cross-trained to conduct IT exams.PrerequisitesFederal Reserve participants should have completed at least level 1 of the ExaminerCommissioning Program.Course OverviewThe goal of this two-day Remote Deposit Capture (RDC) Clinic is to give participants hands-ontraining on the technology of RDC and to enable participants to effectively use the FFIEC workprogram and guidance which was issued in January 2009. The clinic uses a combination oflectures, hands-on demonstrations, and a case study. This course offers 7 ContinuingProfessional Education (CPE) credits.Business Need Analysis: Remote deposit capture is the imaging and electronic transfer ofchecks separate from physical bank locations. It was legally permitted by the Check 21 Actand is being rapidly implemented by financial institutions, primarily for use by commercial(merchant) customers. Examiners are encountering this technology more frequently and needthe skills to evaluate the risks and the adequacy of risk management of this new paymentschannel at the financial institutions they supervise.[Page Break]Page 2
CourseObjectivesU p o n c o m p l e t i o n o f t h i s c o u r s e , t h e p a r t i c i p a n t , at a m i n i m u m , w i l l b e a b l e t o d e m o n s t r a t e t h ef o l l o w i n g skills: D e f i n e key t e r m s a n d a c r o n y m s related to R D C ; D e s c r i b e , at a h i g h l e v e l , t h e t e c h n o l o g i e s t h a t e n a b l e R D C ; D e s c r i b e t h e risks, a n d related controls, related to R D C ; Identify key principles f r o m the F F I E C g u i d a n c e ; a n d , C o m p l e t e the FFIEC’s R D C w o r k p r o g r a m for a m o d e r a t e l y - c o m p l e x financial institution.Post-CourseInterventionT o reinforce learning after the class, participants s h o u l d b e a s s i g n e d to c o m p l e t e at least o n eremote deposit capture review using the FFIEC’s work program.Overview of Remote Deposit Capture Clinic Curriculum[Beginning of the table description:The following table has 2 columns and 8 rows:HeaderRow:Column1–S u b j e c tColumn2–C l a s s H o u r sDatarowunderSubject–RDC OverviewClassHours–1.0DatarowunderSubject–RDC Technology - How it t-side/Bank-side ��Risk Management, Part IClassHours–1.5DatarowunderSubject–Risk Management, Part IIClassHours–1.5DatarowunderSubject–Case Study Break-outs & Instructor-led DebriefingsClassHours–4.5Lastrow–T o t a l L e c t u r e & E x e r c i s e H o u r sRemote Deposit Capture ClinicPage 3Total Class Hours – 11.5[Footnote * - Course offers 7 CPE credits through NASBA.End of Footnote *.]End of the table description.][Page Break]
L e a r n i n gO b j e c t i v e sParticipants d e v e l o p a solid understanding of r e m o t e deposit capture a n d the F F I E C ’ s relatedguidance a n d work program through the following modules.By module, the following learning objectives will be accomplished:[Beginning of the table description:The following table has 2 columns and 6 rows:HeaderRow:Column1–M o d u l eDatarowunderModule–R D C O v e r v i e wColumn2–L e a r n i n gObjectivesLearning Objectives: Identify the fields of a check. Discuss clearing options for imaged Define the major terms and acronyms used withrespect to r e m o t e deposit capture checks.(RDC).Discuss, at a high level, the laws a n dgoverningregulationsRDC.DatarowunderModule–R D C T e c h n o l o g y - H o w i t W o r k sLearning Objectives: N a m e the technology c o m p o n e n t s n e e d e d tofacilitate RDC. D i s c u s s a r e a s o f p o t e n t i a l s e c u r i t y w e a k n e s s in anetwork architecture that includesDatarowunderModule–R i s k M a n a g e m e n t , P a r t IList t e c h n o l o g i c a l c o n t r o l s t h a t s h o u l d b e in p l a c ei n aObjectives:ny RDCLearning RDC.implementation.Explain h o w credit a n d reputational risks arise withthe use of remote deposit capture. Discuss the 4 major c o m p o n e n t s that should be apart of the R D C risk m a n a g e m e n t a customer due diligence DatarowunderModule–R i s k M a n a g e m e n t , P a r t IIprocess.List a t l e a s t 4 i t e m s w h i c h s h o u l d b e c o n s i d e r e d inprocess.D i s c u s s t h e s e g r e g a t i o n o f d u t i e s t h a t s h o u l d b e inplace at both the m e r c h a n t a n d the b a n k w h i c hoffers R D Cservices.Learning Objectives: Discuss the reporting and monitoringpracticeswhich bank management should maintainoverRDC services. List 3 t o p i c s w h i c h s h o u l d b e a d d r e s s e d incustomer training on R D Cservices.LastrowunderModule–C a s e S t u d y a n d D e b r i e f i n g s D i s c u s s t w o m a j o r t y p e s o f f r a u d r e l a t e d t o R D Ca n d w h a t c o n t r o l s s h o u l d b e in p l a c e t o m i t i g a t et h e Objectives:ir risk of occurring.Learning A p p l y t h e c o n c e p t s l e a r n e d in l e c t u r e s t o i d e n t i f yrisks a n d evaluate the quality of riskmanagementin an RDC implementation case study. Complete the FFIEC w o r k program for R D Cbasedon the case study.Remote Deposit Capture ClinicPage 4 Articulate findings a n d r e c o m m e n d a t i o n s for classdiscussion.End of the table description.][Page Break]
Class SizeThe optimal class size for the Remote Deposit Capture Clinic is approximately 20 participants.To provide sufficient variety of interaction among class participants, the minimum class sizeshould be 10 participants.InstructorsRemote Deposit Capture Clinic is conducted and supported by a group of professionals,including senior examiners and technology architects. Content for the class was developed bysenior IT and safety-and-soundness examiners from the Federal Reserve Banks of Chicago,Atlanta, and Cleveland. The class typically has 2-3 instructors assigned.Remote Deposit Capture ClinicPage 5
Remote Deposit Capture Clinic (S&R Technology Lab) Page 2 . The Board of Governors of the Federal Reserve System is proud to offer technology-related . Explain how credit and reputational risks arise with the use of remote deposit capture. Discuss the 4 major components that should be a
