This document discusses leveraging technology to support treasury policies. It begins with defining treasury policies and key policies corporations should have. It then discusses maintaining and implementing policies, and how technology can improve fraud prevention, standardize workflows, enable compliance, and allow treasury to become a more strategic partner through increased productivity, controls, and visibility. Examples of regulations that impact corporate treasury are also provided.

1. Leveraging technology to support your treasury policies
September 20th, 2016

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Martha Grant
Senior Consultant
Actualize Consulting
Jamie Christel
Treasury Advisor
Kyriba
Today’s Presenters

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 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. What Are Treasury Policies

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Policies Procedures
What are treasury policies?

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Policies lay out:
 Risk tolerance and strategy
 Accountability and ownership
 Partnerships
What are treasury policies?

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Policies should be:
 Formally documented
 Approved by the Board
and/or senior treasury managers
What are treasury policies?

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 Control risk
 Ensure best practice
 Standardize globally
Why should I care….?

9. Key Treasury Policies

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 Bank account administration
 Debt management
 Payments
 Short-term investments
 Counterparty risk management
 Foreign exchange
 Business continuity
 Disaster recovery
 Treasury technology
Key treasury policies

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 Intercompany loans/activity
 In-house banking
 Investment policy for employee benefit assets
(retirement plans)
Other policies to consider…

12. Maintenance and Implementation

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 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. Leveraging Technology to Support Treasury Policies

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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

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Standardize workflows and procedures for efficiency

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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

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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

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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

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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

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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

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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. Questions?
Jamie Christel
jchristel@kyriba.com
Martha Grant
mgrant@actualizeconsulting.com

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