Pub. 3 2012 Issue 3

www.wvbankers.org 16 T he movie “Bandits” was released in 2001. The film depicts two bank rob- bers played by Bruce Willis and Billy Bob Thornton who execute a ‘morning glory’ robbery, which requires them to coerce a bank officer to provide the all-clear signal. Thanks to Hollywood, the industry secret regarding our all clear process became available to all the wrong people. It has taken eleven years for our industry to develop a digital, cryptic solution that changes the paradigm for closing and clearing buildings. The first electronic product in this category is called the All Clear System, which was launched in March of 2012. It is up to your bank security officer to introduce this new paradigm to your team. He or she plays the key role in protecting the bank from safety compli- ance issues down the road. The Bank Safety Act of 1968, states that, “…the security officer for each bank shall report at least annually to the bank’s board of directors on the implementa- tion, administration, and effectiveness of the security program.” There is no question that the new digital technology has changed the paradigm for closing and opening branches. It is now up to security officers to understand how the new technology works. They also need to communicate its effectiveness to bank board members so that the crime- prevention tool can be implemented to ensure compliance. How can he or she motivate man- agement and convince bank board members that compliance is important? Today, almost all banks are still using outdated all clear signals that are easy to detect, easier to forget and are impos- sible to audit. The first and most obvious reason for improving safety compliance is that lives will be saved with the new building clearing systems. For some organizations, that argument may not be sufficient. Board members take their fiduciary duties seriously and are focused on the bottom line. They may push back against the security offi- cer, preferring the status quo and say: “We’ve been doing it our way for years. There is no need to change.” The security officer may want to remind them that in addition to the standards of care and loyalty that board members must adhere to, the Bank Pro- tection Act requires them “…to comply with this regulation and ensure that a written security program for the bank’s main office and branches is developed and implemented.” No one in their right mind wants to be on the wrong side of a Federal case. The security officer may also want to mention that there are significant operational costs that a branch incurs after a robbery note or morning glory robbery. The costs are above and be- yond the currency stolen. For example: • Personnel performance may be impacted due to mental anguish and loss of productivity • Counseling may be required at financial institutions’ expense • Lawsuits such as Workers’ Compensation and personal civil cases may be filed • A branch may lose revenue due to the stigma associated with the robbery What’s a Security Officer to Do About the New Paradigm for Clearing Branches? By Matt Dugas, Senior VP of Sales a d Design, West Virginia Regional Sales Manager, BD&E