Embed Size (px)
Citation preview
Leveraging technology to support your treasury policies
September 20th, 2016
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2
Martha GrantSenior Consultant Actualize Consulting
Jamie ChristelTreasury AdvisorKyriba
Today’s Presenters
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 3
What are treasury policies?
Key policies for corporates
Policy maintenance and implementation
Leveraging technology to support your treasury policies– Improves protection from fraud and mistakes – Consistency of process, implementation of workflows and procedures– Increases efficiency of your treasury operation – Delivers compliance – internal and external– Drives treasury to become more of a strategic partner
Agenda
What Are Treasury Policies
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
Policies Procedures
What are treasury policies?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6
Policies lay out:
Risk tolerance and strategy
Accountability and ownership
Partnerships
What are treasury policies?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7
Policies should be:
Formally documented
Approved by the Board
and/or senior treasury managers
What are treasury policies?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 8
Control risk
Ensure best practice
Standardize globally
Why should I care….?
Key Treasury Policies
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10
Bank account administration
Debt management
Payments
Short-term investments
Counterparty risk management
Foreign exchange
Business continuity
Disaster recovery
Treasury technology
Key treasury policies
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 11
Intercompany loans/activity
In-house banking
Investment policy for employee benefit assets (retirement plans)
Other policies to consider…
Maintenance and Implementation
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 13
Review annually or when major changes are made to operating procedures– Ex: Introduction of floating NAV
Require Board or senior Treasury approval
Communicate, communicate, communicate
Maintenance and implementation
Leveraging Technology to Support Treasury Policies
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15
Technology can improve: Application security (password controls & authentication) Data security (improve protection) Daily bank activity monitoring Bank account control– Dual authorization– Centralized view of all changes
Payments– Payment approvals– Digital signatures
Trading– Standard settlement instructions– Proper due diligence
Fraud prevention opportunities
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16
Standardize workflows and procedures for efficiency
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 17
Internal compliance: Establish
Comply with
Measure against
Examples: Separation of duties – payments, reconciliations
Trading/approval limits
Password controls/login prevention
KPIs – cash forecasting, hedge performance, etc.
Robust audit functionality
How technology enables governance
Internal Policies & Procedures
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 18
Regulation Impact to Corporates
FAS157 / IFRS 7
FAS133 / IFRS 9
FAS 157/133 / IFRS 13
Generate valuations for derivative financial instruments
Develop new framework to account for derivative transactions
Incorporate credit risk in all valuations
Sarbanes-Oxley 302/404 (US)CFO needs to attest to audit and controls existence
- Treasury must prove they exist internally- CFO must formally agree they exist externally
EMIR (Europe)Dodd-Frank (US)
Tracking of net new information, including unique transaction identifiers (including by business unit)
Reporting of all derivative transactions to central trade repositories
Central clearing of derivatives (proposed)
SEPA (Europe)
Bank Accounts – switch to IBANsOutgoing Payments – switch to new SEPA SCT formats
Direct Debits – switch to new SEPA SDD formatsDirect Debits – refresh mandates w/ customer and bank
External / regulatory compliance
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 19
Regulation Impact to Corporates
FBAR (US)
For American companies and residents
Must track all foreign accounts + signatories + max balance of account in prior 12 months
Reporting by corporates and on personal tax reporting
Specific forms (fun!) for both corporates and personal
BASEL III
Direct impact to corporates = nothingIndirect impact is significant
-Increased borrowing costs (banks less likely to lend)-Increased hedging costs (higher premiums offered)
-Emphasis on non-balance sheet lending (e.g. SCF)-Push towards internal financing (netting & IHB)
FTT (Europe)Must calculate and pay significant taxes on borrowing and
derivative transactionsIncreased costs to borrow & hedge
Regulatory compliance
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 20
Productivity
Financial controls
Global visibility
Effective financial decisions
Value creation hierarchy
Single point of data entry• Eliminate re-keying errors• Improve accuracy and
confidence in analysis
Automate repetitive tasks• Shift time from processing to
analyzing• Achieve results more quickly
Streamline reporting• Automate and schedule
preparation and distribution
Treasury as a strategic partner
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partnerBuild business value through collaborative business partnerships Intelligence Insight Analysis
Examples• Cash enablement• Capital structure• Shared service model• Risk Management• Supplier/Customer Finance• Market expansion• Business Intelligence
Value creation hierarchy
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 22
Further reading
• AFP Guide: Business Continuity Planning: Why Treasury Needs a Plan BDownload at: http://info.kyriba.com/AFP-TIP-Guide-KDC
Related Blog Posts:• Going global: top six questions answered• Money Market Fund Reform – a lot of fuss but worth the attention?• Boosting visibility and control with centralized payment factories• Making payments less risky• What keeps the corporate treasurer up at night?
© 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 24
Thanks for attending! Let’s keep in touch…
facebook.com/kyribacorp
twitter.com/kyribacorp
linkedin.com/company/kyriba-corporation
youtube.com/kyribacorp
slideshare.com/kyriba
kyriba.com/blog
facebook.com/actualizeconsulting
twitter.com/actualize
linkedin.com/company/actualize-consulting
youtube.com/watch?v=Cl-7NImor1Y
instagram.com/actualizeconsulting
