Welcome » IT Booklets » Operations » Risk Mitigation and Control Implementation » Other Controls » Negotiable Instruments
Negotiable instruments require specific controls to prevent
financial loss. IT operations staff members should handle or
originate negotiable instruments following the institution's
security procedures. Management should establish strong controls
over the inventory of negotiable instruments, both in blank
(unprocessed) form and after processing. Management should restrict
and monitor physical and logical access to negotiable instruments
and maintain a precise audit trail of issued and unissued items.
Typically, negotiable instruments are numbered, and management can
quickly identify missing items or sequences of items.
Additional controls are necessary if the organization uses
signature writers (devices that automatically sign negotiable
instruments as they are printed). At a minimum, the organization
should secure the signature plates under dual control when not in