Bank and Financial Institution Safety

Bank and Financial Institution Safety

Security threats to the banks and financial institutions have sharply increased over the last few years (Information leakage, security lapses to blame for bank heists, 13 Dec). But investing for enhancing security is often overlooked and even considered "necessary evil" in our country. This is troubling.

Security is an evolving process and it must be carefully planned from the very beginning. Security functions are integral to business systems. Thus, each responsible organization needs to have formally written policies and guidelines that include administrative, technical, and physical securities. Planning for security in advance of deployment will provide a more complete and cost effective solution. Advance security planning will ensure that security services are supportable and available when necessary.

A functioning security system is vital for banks and financial institutions. Banks have to transfer a large amount of cash to service centres in the morning and collect the deposits in the evening. They may sometimes have to compromise with security principles in practice, rendering the cash-in-transit even more vulnerable to looting and robbery. The repetitive modus operandi that staffs and guards follow creates fertile grounds for criminals. Criminals can often easily take the situation under their control.

There is no reliable security system in place even for transportation of cash from various customs offices of the country. Often vehicles ferrying cash are escorted by two unarmed guards—sometimes only one armed guard. Such vehicles are small but they have to accommodate large boxes, staffs, and guards. This increases the security risk even more. In case of highway robbery, the guards wont be able to open fire from their weapons because they are squeezed inside the tiny vehicle. Thus, even having guards may not be enough to contain the situation sometimes.

It's extremely necessary to improve the security system at banks and financial institutions. I suggest the following measures: First, banks need to inform the police and get police escort before they ferry cash from one place to another. Second, they need to increase the number of trained armed guards for escorting, and finally, they need to design a safe vault inside the vehicle itself to carry cash. If not, they need to procure armored vehicles for the purpose.

Govind P. Thapa, retired Additional Inspector General of Police, Lalitpur

Opinion published in Republica, Dec 15, 2013