1
Treasury as a
Strategic Partner
Opportunities for treasury to create new value in the
organization
April 7, 2014
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 2
Treasury as a Strategic Partner
There are many...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 3
Treasury as a Strategic Partner
Topics for dis...
4© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Treasury has a lot to manage every day!
Dodd-Fr...
5© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL.
Headwinds for Today’s Treasury Professional
Tr...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6
Productivity
Financial controls
Global visibi...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7
Improve data integrity
• Eliminate reliance o...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8
Productivity
Financial controls
Global visibi...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9
Productivity
Financial controls
Global visibi...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10
Productivity
Financial controls
Global visib...
11© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Strategic Treasury Priorities
Financial
Perfor...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 12
Global Visibility
• TMS will automate bank
re...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 13
Hedge Accounting
• Regulatory compliance is
t...
14© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
BAM and eBAM:
• Automation and reduced
paperwo...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 15
Opportunities to increase business value
Trea...
© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 16
Supply Chain Discounting
• Cash Forecasting d...
17© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Banking Costs
• Bank Fee Analysis measures pri...
18© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Efficiency & Scalability
• Making treasury mor...
19© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Shared Service Model
• Treasury can either lea...
20© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Business Advisory
• Treasury has unique financ...
21© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Business Advisory
• Treasury has unique financ...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22
Productivity
Financial controls
Global visib...
23© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL
Tips and Tricks to becoming more strategic
• G...
© 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL.
bob.stark@kyriba.com
twitter.com/kyribacorp
kyr...
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Treasury as a Strategic Partner - Opportunities for Treasury to Create New Value in the Organization

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Treasury as a Strategic Partner - Opportunities for Treasury to Create New Value in the Organization

  1. 1. 1 Treasury as a Strategic Partner Opportunities for treasury to create new value in the organization April 7, 2014
  2. 2. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 2 Treasury as a Strategic Partner There are many opportunities for treasury to create new value in the organization We will talk about how to get there – and the opportunities to contribute
  3. 3. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 3 Treasury as a Strategic Partner Topics for discussion 1) Hierarchy of Treasury Needs: How to reach “Strategic Partner Status” 2) Treasury opportunities 3) Treasury influenced opportunities 4) Your questions
  4. 4. 4© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Treasury has a lot to manage every day! Dodd-Frank Sarbanes-Oxley Bank signatoriesFraud Spreadsheets ERP SEPA Mandates Global banking regulations Compliance Payments approvals Interest rate fluctuation FX volatility Amortization Pooling In-house banking Counterparty risk Operational risk Tax regulations InvestmentHedge accounting Netting program Earnings Credit Credit qualityEMIR Trade confirmations Letters of Credit SWIFT Positive Pay Exceptions Accounting Availability Reporting, Reporting, Reporting IFRS FAS Debt
  5. 5. 5© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. Headwinds for Today’s Treasury Professional Treasury’s challenge: predict the weather and act accordingly Treasury professionals demand:  Executive visibility into Cash & Treasury activity − Global bank connectivity − Consolidated cash forecast − Currency & risk exposures  Lack of Productivity − Cash Management − Accounting − Reporting  Risk Management − FX or Interest Rate Exposure − Fraud prevention (internal and external) − Business continuity/disaster recovery
  6. 6. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 6 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
  7. 7. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 7 Improve data integrity • Eliminate reliance on ‘super’ spreadsheets • Standardize processes and procedures Controlled workflow • Separation of duties • Reduce SOX audit costs Centralized audit trails • Improve visibility and transparency • Better control of workflowProductivity Financial controls Global visibility Effective financial decisions Treasury as a strategic partner Value Creation Hierarchy
  8. 8. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 8 Productivity Financial controls Global visibility Effective financial decisions Cash • Bank reporting • Cash positioning • Forecasting • Liquidity Financial positions • Investment • Debt • Intercompany • Foreign exchange Exposures • Foreign exchange • Interest rate • Counterparty • Supply chain Treasury as a strategic partner Value Creation Hierarchy
  9. 9. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 9 Productivity Financial controls Global visibility Effective financial decisions Excess cash and liquidity • Strategic investing • Debt repayment • Supplier discounts Treasury movement/analysis • Bank Fee Analysis • Search for liquidity • Netting • Optimal funding/drawdown (i.e. international) Risk Management • Better hedging • Trading diversification Treasury as a strategic partner Value Creation Hierarchy
  10. 10. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 10 Productivity Financial controls Global visibility Effective financial decisions Treasury as a strategic partner Build value through collaborative business partnerships  Intelligence  Insight  Analysis Examples?? Value Creation Hierarchy
  11. 11. 11© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Strategic Treasury Priorities Financial Performance Risk Management Operational Improvement Business Continuity Regulatory Compliance Treasury Contribution to Business Value
  12. 12. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 12 Global Visibility • TMS will automate bank reporting, consolidation of positions and exposures • Delivers confidence and accuracy for cash and liquidity (Operational improvement) • Enables better risk management practices  Reduced liquidity risk  Reduce financial risk (better FX exposure visibility) Opportunities to increase business value Financial Performance Risk Management Operational Improvement
  13. 13. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 13 Hedge Accounting • Regulatory compliance is tactical -> with a strategic element • Compliance forces a risk discipline and capability  Full analysis and disclosure on financial reports coming  Proactive organizations are ready • Compliance process helps identify opportunities to build business value through hedging Opportunities to increase business value Risk Management Regulatory Compliance
  14. 14. 14© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL BAM and eBAM: • Automation and reduced paperwork are obvious eBAM benefits • Control of bank accounts is the real value  eBAM requires BAM to be successful  Allows treasury decentralization and global expansion w/out compromising operational risk and global visibility Opportunities to increase business value Risk Management Operational Improvement
  15. 15. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 15 Opportunities to increase business value Treasury Disaster Recovery • Treasury must be ‘on’ at all times and in all scenarios (holidays, power failures, storms) • Moving online enables this, increasing system availability & decreasing RTO/RPO (i.e. loss) • Same move to ‘online’ also offers o integration to internal/external platforms o visibility – cash, trades, exposures in one view o costs to support treasury service levels o A great example of optimizing cost/service Risk Management Business Continuity
  16. 16. © 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL 16 Supply Chain Discounting • Cash Forecasting determines excess cash & liquidity or requirement to preserve liquidity  Early Payment Discounting – Opportunity for cash optimization by proactive offer of supplier discounts  Payables Financing – Bank will make early payment while buyer can delay payments, improving DPO • Collaborative projects create high business value  Improved cash returns, risk mgmt, working capital Opportunities to increase business value Financial Performance Risk Management Operational Improvement
  17. 17. 17© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Banking Costs • Bank Fee Analysis measures pricing and activity accuracy • In combination with other treasury software, can deliver:  Bank account usage vs. cost – for bank account optimization  Total cost of bank relationships, including trading costs (a.k.a. total revenue banks receive from you)  Supports spreading around business more evenly Opportunities to increase business value Financial Performance Operational Improvement
  18. 18. 18© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Efficiency & Scalability • Making treasury more efficient frees time for value added activities  Competitor analysis  Economic Analysis  Fraud prevention  Peer Benchmarking  Treasury KPI Performance  Unclaimed funds recovery Opportunities to increase business value Case Study: Pulte Homes Financial Performance Operational Improvement Business Continuity
  19. 19. 19© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Shared Service Model • Treasury can either lead or be part of an SSC model • Key benefits to the organization:  Improve overall liquidity management  Gain operating efficiencies  Centralize control while supporting decentralized business structure  Better scalability to drive business growth Operational Improvement Business Continuity Opportunities to increase business value Case Study: DFC Global
  20. 20. 20© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Business Advisory • Treasury has unique financial expertise and insight • Key examples include: Opportunities to increase business value Financial Performance Risk Management Operational Improvement Business Continuity Regulatory Compliance • Strategic Partner to Senior Management and the Board • Strategic Partner to Critical Service Providers • Capital Allocation, Capital Structure Activity, M&A • Investment Community • Rating Agencies • Armored Car Carriers • Credit Banks Case Study: DFC Global
  21. 21. 21© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Business Advisory • Treasury has unique financial expertise and insight • Key examples include: Opportunities to increase business value Financial Performance Risk Management Operational Improvement Business Continuity Regulatory Compliance Case Study: DFC Global • Strategic Partner to Broader Finance Department Company-wide • Strategic Partner to Operations and Product Development • Centralization & Standardization of cash management and payables processing • Web-based and Mobile Payments Strategies
  22. 22. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. 22 Productivity Financial controls Global visibility Effective financial decisions Treasury as a strategic partner Build value through collaborative business partnerships  Intelligence  Insight  Analysis Examples Value Creation Hierarchy Financial Performance Risk Management Operational Improvement Business Continuity Regulatory Compliance
  23. 23. 23© 2014 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL Tips and Tricks to becoming more strategic • Get Involved Build relationships that get you “In the room” • Ideas Don’t be shy, put your idea out there regardless of how small or big it might be. • You can never automate too much You will still have a job, just a better one • Pay attention to your technology Not all software is built the same Focus on what can enable you to strategic benefits
  24. 24. © 2013 Kyriba Corporation. All rights reserved. PRIVILEGED & CONFIDENTIAL. bob.stark@kyriba.com twitter.com/kyribacorp kyriba.com linkedin.com/company/kyriba-corporation kyriba.com/blog Thank you

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