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Webinar slides treasury policies tms 9-20-16_ss

Leveraging technology to support your treasury policies

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Webinar slides treasury policies tms 9-20-16_ss

  1. 1. Leveraging technology to support your treasury policies September 20th, 2016
  2. 2. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2 Martha Grant Senior Consultant Actualize Consulting Jamie Christel Treasury Advisor Kyriba Today’s Presenters
  3. 3. © 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
  4. 4. What Are Treasury Policies
  5. 5. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5 Policies Procedures What are treasury policies?
  6. 6. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6 Policies lay out:  Risk tolerance and strategy  Accountability and ownership  Partnerships What are treasury policies?
  7. 7. © 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?
  8. 8. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 8  Control risk  Ensure best practice  Standardize globally Why should I care….?
  9. 9. Key Treasury Policies
  10. 10. © 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
  11. 11. © 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…
  12. 12. Maintenance and Implementation
  13. 13. © 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
  14. 14. Leveraging Technology to Support Treasury Policies
  15. 15. © 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
  16. 16. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16 Standardize workflows and procedures for efficiency
  17. 17. © 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
  18. 18. © 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 IBANs Outgoing Payments – switch to new SEPA SCT formats Direct Debits – switch to new SEPA SDD formats Direct Debits – refresh mandates w/ customer and bank External / regulatory compliance
  19. 19. © 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 = nothing Indirect 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 transactions Increased costs to borrow & hedge Regulatory compliance
  20. 20. © 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
  21. 21. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21 Productivity Financial controls Global visibility Effective financial decisions Treasury as a strategic partner Build 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
  22. 22. © 2016 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 22 Further reading • AFP Guide: Business Continuity Planning: Why Treasury Needs a Plan B Download 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?
  23. 23. Questions? Jamie Christel jchristel@kyriba.com Martha Grant mgrant@actualizeconsulting.com
  24. 24. © 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

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