Solving Dual Control Problems

Question:

I am looking for suggestions. I am trying to find the right solution to a dispute with retail. A time management firm has come in and reduced staffing in our branches. This has caused tremendous breaches of our policy of dual control in all cash handling areas. I have suggested a fix I have used in other banks; keep sets of combos in separately sealed envelopes in a dual control container at a nearby branch. When branch "A" needs a particular half of the combo, they can call branch "B" and get it over the phone. Of course we have to advise the folks not to write it down. Any thoughts?

Answer:

This is a particularly poor practice. If you use this approach and there's a "mysterious cash disappearance" in branch A, all of the employees who had access to the container in branch B will also be suspects. Instead, how about storing sealed envelopes containing combinations with the Security Officer, who has secrecy provisions already built into his/her position description? Audit will then also have to visit one location to determine if this dual control procedure works -- and certify that it's being followed. Security can then also keep the log of who required the information -- and why.

First published on BankersOnline.com 10/7/02