Financial risk management
Todays Treasury function needs to be capable of dealing with a
dynamic and constantly changing financial landscape, with the right
systems and processes to support, rather than impede, changes.
Deloittes Capital Markets and Financial Instruments Advisory
team can assist your organisation and provide solutions for
specific questions and concerns such as:
High level assessment is your treasury still appropriate to meet
your
current needs? should the treasury function be revitalised to
meet,
the ever changing requirements and internal and external
expectations?
If the treasury function is restructured what might be the
impact on the financial results and Balance sheet?
can the current treasury function meet the organisations
objectives?
how does your treasury function compare with your
competitors?
is the infrastructure that supports your treasury function
efficient?
does your treasury management team, and its internal
relationship with the business, provide management with the
appropriate information to make informed decisions?
Strategy are the current strategies employed appropriate for
the current environment and future developments? your current
business strategy may be changing,
does your treasury have the capacity, to support these changes,
does it need to be repositioned with regards to the treasury
strategy and risk profile of your organisation?
what are the opportunities available to your organisation as a
result of developments in the global financial markets?
Controls fit for purposeYou need to be confident that you have a
control framework that minimises the risk of mistake or fraud
resulting from treasury transactions.
how does your governance structure compare to other
organisations of similar size and complexity?
do the existing controls adequately address the operational risk
you are confronted with?
can technology assist you to automate processes and controls
leading to a reduction in overhead costs?
The structure of the treasury function Whether you have a
centralised or a decentralised treasury function, you need to have
visibility of group wide risks and cash flows. The staffing of your
treasury function needs to have the appropriate skills and
experience to obtain the maximum value from the treasury team. How
does your treasury compare to other organisations? Should you
consider outsourcing certain processes of the treasury
function?
EfficiencyHow should you measure whether your treasury is
providing optimal results? Many organisations utilise key
performance indicators (KPIs) but which ones are appropriate for
your organisation? Do you obtain maximum efficiencies by using
technology in the automation of Treasury processes including
reporting?
DocumentationDoes your documentation properly define the role of
the treasury function, and supports the day to day operations? Are
you satisfied that your documentation of policies, processes and
procedures achieve this?
Deloitte Capital Markets & Financial Instruments Advisory
TeamThe challenges raised above can seem daunting and difficult to
solve, particularly given time constraints and adequate staffing
resources to address these issues.
We utilise our detailed understanding of the treasury function
and knowledge of how to compare to other organisations in order to
provide an independent viewpoint on your treasury function.
We would be pleased to discuss any aspect of treasury management
in your organisation.
The ever changing global markets have far reaching implications
for an organisations Treasury Management Function
Stakeholders
Board
Chief Executive Officer
Chief Financial Officer
Finance Treasury Business planning
Back officeMiddle officeFront office
strategic planning dealing.
segregation of duties settlement recording accounting
disclosure.
regular analysis compliance with policy stress testing.
Treasury function
Emissions trading impact analysis
Assessment of treasury KPIs
Risk not identified
Compliance with accounting standards
Capital structure
Liquidity risk
Commodity risk
Operational risk
Funding risk
FX risk
Legal risk
Interest rate risk
Board reporting
Scenario analysis
Treasury compliance with policy
Model risk Strategy assessment
Valuation calculations
Black box measure verification
Definition of risk appetite
Covenant compliance
Back testing model Policy gap analysis
Policy review
Assessment of controls effectiveness
Treasury system implementation & review
Fraud assessment Efficiency of cash management
Governance
Mon
itoring
policy ap
prov
al
Rep
orting
reco
mmen
dation
s
Critical financial risks
Internal audit/operational effectiveness
Identification of risk
Measurement of risk
Policy for managing risk
Management per policy
Monitoring of management
Ongoing reassessment
Risk & control framework
John KiddPartner
Tel: +61 (0) 3 9671 7357 email: [email protected]
Hussein HusseinPartner
Tel: +61 (0) 2 9322 7485 email: [email protected]
The financial risk management value mapOur service offering
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committed to becoming the standard of excellence.
About Deloitte Australia In Australia, the member firm is the
Australian partnership of Deloitte Touche Tohmatsu. As one of
Australias leading professional services firms. Deloitte Touche
Tohmatsu and its affiliates provide audit, tax, consulting, and
financial advisory services through approximately 4,500 people
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Member of Deloitte Touche Tohmatsu Limited
2011 Deloitte Touche Tohmatsu.AM_Mel_01/10_043653
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