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Submmited by:-
AKSHAY THAKUR
B.C.A. 2nd
7115
s.v.g.college ghumarwin
Presentation Outline
• Google info
• Starting with a clean slate
• Treasury innovation, Google-style
• Some insight into what we’re doing in:– F/X
– Portfolio
– Financial Risk
– Systems
3
Google’s Mission
Organize the world's information and make it universally accessible and useful
4
Search: At the Core
Search is at the heart of everything Google does
More engineers working on search than ever before
Search is not a solved problem – offline info, personal info, personalized results, mobile experience
5
Google Strategy: Search. Ads. Apps.
Search.
Ads.
Apps.
6
Google Evolution
1995 1998 2000 2003 20052004 2006
?
Core Search Ads Monetization Communications Collaboration ?
Google Is a Data-Driven Company…
Search, Sites,My Ads
Google Analytics
Google Website
Optimizer
Google Trends
Google Ad Metrics
My Sites
Some Interesting Google Data-Points
Searches per day: Every day millions of people search on Google for information
International traffic: More than half our searches come from outside the U.S.
Google Network reach/frequency (Google Network includes all Google sites and AdSense for content pages) • The Google Network reaches more than 80% of worldwide Internet users
• The Google Network reaches more Internet users worldwide than any other web property or ad network
PageRank (just one of more than 200 signals we use to determine the rank of a website)• The web changes all the time (10–20% of the web is brand new every time we crawl it)
• Google has never seen 20–25% of its queries before, showing the creativity of our users and proving that small indices aren’t useful
• Google updates its search algorithms on a weekly basis
Google News: now includes articles from over 10,000 news sources in more than 18 languages worldwide. Among these, over 4,500 are English language news sources
Advertisers: Hundreds of thousands of advertisers worldwide
Client Software: Google Toolbar has millions of users worldwide
Google Desktop: has millions of users worldwide
Audio Advertising: More than 1,600 radio stations available to U.S. AdWords advertisers
Print Advertising: More than 600 newspapers now available to U.S. AdWords advertiser
TV Advertising: We are currently in a closed trial to test an auction-based TV advertising system working with EchoStar and Astound Cable
YouTube: People watch hundreds of millions of videos on YouTube every day • Hundreds of thousands of videos are being uploaded to YouTube daily
• Every minute, eight hours of video is uploaded to YouTube
Starting with a clean slate• very small group• few legacy systems• no inertia around “how we’ve always
done things” Deep Dive
• Google’s culture− bottoms-up and tops-down
• Google’s objectives− ascertain Treasury’s
involvement• Treasury’s history (and timeline)
− how fast do we move?− what has focus been?
• Existing Treasury personnel
• skills and career goals• Listen!!!!
Starting with a Clean Slate
Treasury Areas of Initial Focus
Take a big Bite!1. Foreign Exchange
2. Portfolio Management
3. Corporate Finance
4. Financial Risk Management
5. Cash Management / Operations
6. Insurance / Business Risk Management
7. Stock Services
8. SYSTEMS!
Aim highTake a deeply analytical approach to everything
• A sophisticated approach doesn’t have to be scary
• Risk management as a foundation for forecasting, strategies etc.
• Strive for as-close-to-as-possible visibility into exposures, market values of positions, risk metrics, etc
Diversify your portfolioAll insurance should be strategicUse systems wherever possible
• Straight-through processing is critical
Look at entire transactions and processes from start to finish and to use real-time numbers
Directional Themes
Take a long-term focus
Hire for strategy− High level strategy drives hires
− Personnel drive bottoms-up strategy validation and details
− Don’t rush hiring
− Hire expertise + adaptive intelligence
− Bar should be to be as good as counterparties
Personnel Focus
Foreign Exchange
Net Revenue must be hedged
F/X risks should be managed in-house
You need robust underlying risk systems, operational controls, trading and reporting platforms
You need industry standard benchmarks
• Not measuring performance is a mistake
Having a handful of professionals in house is necessary
Options are more flexible, have better accounting treatment and are better risk management tools than forwards
1. Diversification is key – a concentrated risk is not a good risk, even if it seems safe
2. Asset allocation is key vs. trading
3. A mix of in-house and external management is logical
4. You need robust underlying risk systems, operational controls, trading and reporting platforms
5. You need industry standard benchmarks (i.e. universe of money managers)
6. Having a handful of stellar Capital markets professionals in house is necessary and economically sound (external managers are more expensive)
7. Although derivatives can obviously be abused, they are ideal risk management tools
Portfolio
Financial Risk Management
Without underlying Operation and Risk systems, it is impossible to innovate or truly understand/model the risks being taken or quantify the risks that need to be mitigated
Robust systems can also provide a competitive advantage
Multiple risk measurement methodologies is important
• VaR
• Sensitivity analysis
• Scenario analysis F/X and Portfolio policies should incorporate statistical risk measures
• Risk limits
• Risk-adjusted returns relative to benchmarks
Thank you
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