TREASURY PROCESS MANAGEMENT

Stay on top of things

  • Today’s businesses are exposed to all kinds of constantly changing conditions and factors of influence, be they technical, organizational, structural or regulatory. All these factors impact the treasury function, compelling organizations to respond without delay. The necessary adjustments are challenging. Yet they are also an opportunity to rethink and optimize existing treasury processes and structures.

  • Continuous realignment requires an integrated approach that takes into account functional requirements, their technological implementation, the design of suitable processes and compliance with a raft of different rules and regulations. A flexible organization and the ability to drive change from the center are crucial success factors.

  • Given the pivotal role played by the treasury function in corporate management and control, all steps to develop and improve this function must make due provision for a wide range of conditions and constraints. A holistic view is also needed to coordinate treasury processes across divisional boundaries.

  • In particular, due attention must be paid to the IT strategy, accounting rules, tax considerations, legal norms, regulatory provisions, controlling requirements and – by no means least – personnel issues. This requires an appropriate and broad knowledge in order to fully assess and understand the implications of the wide range of treasury activities. Lastly, there is usually also the need to manage budget restrictions and personnel bottlenecks.

Many requirements a single, integrated approach

  • Wherever many different requirements have to be mastered, it is vital to model strategic topics in appropriate methods and procedures. At the same time, efficient processes and systems must be put in place to enable operational implementation. Successful treasury departments combine both aspects.

    To stay on top of so much complexity, FORFIRM specialists have drawn on their years of experience in financial and treasury management – to develop an integrated approach that covers these bases. This in turn helps them combine professional consulting with impressive implementation skills.

  • FORFIRM firms can help develop solutions that incorporate compliance and security considerations clients face. The more than 300 people at FORFIRM's Global Financial and Treasury Network work closely together, giving you access to a high-performing team whose professional support can help you master challenges and achieve your goals. In line with the standard to deliver every project with quality, on time and on budget.

Your challenges and how FORFIRM firms can help

Financial risk management

• Identifying risk drivers and setting up an early-warning system for risk items in the context of currency, interest, credit and default risk management

• Identifying your organization’s risk appetite and its risk-bearing capacity

• Designing and testing of risk strategies and management models

• Supporting the financial risk management organization and their operational processes

• Building an accurate reporting system (a ‘risk management cockpit’)tailored to the needs of its target groups

Cash and liquidity management

• Designing and handling the technical implementation of integrated liquidity planning and analysis

• Establishing a system of value-based liquidity management

• Assessing the risk/return profile for capital investments and developing tax optimization concepts

• Designing and implementing an in-house bank to manage inter company payments

• Setting up tailor-made cash pooling structures and assisting with the selection of banks

• Designing appropriate tax terms and charge rates for enterprise-wide cash management

Commoditiy and energy management

• Designing an exposure evaluation and group wide consolidation system

• Introducing ratios and scenarios for risk analysis

• Developing and optimizing hedging strategies, end-to-end processes and risk management organizations

• Advising on the IT-related implementation such as market databases, inventory management systems and at-risk methods for commodity and energy risks

• Advising on appropriate charge rates when implementing central purchasing and hedging strategies

Payment transactions

• Performing payment transaction compliance checks

• Strategy consulting on payment transactions (business model, opportunity analysis, business case)

• Designing and implementing solutions for internal and external payment transactions (payment/collection factories, shared service centers)

• Assisting with the selection of banks (RFPs, beauty contests)

• Setting up technical connections (formats, connectivity, e-banking)

Strategy, organization and processes

• Benchmarking and reviewing to ensure proper order, security and efficiency

• Consulting on M&A transactions: establishing new treasury organizations or integrating existing treasury units

• Aligning treasury organizations with current challenges and cost targets

• Reengineering processes in light of strategic objectives and compliance requirements

• Supporting the production of guidelines and organizational design

Accounting and valuation

• Analyzing and optimizing market data supply

• Launching and validating valuation models for financial derivatives, stock option programs and complex financing structures

• Advising on how to implement and optimize the recognition of financial instruments in accordance with existing IAS, IFRS and HGB provisions, especially with regard to hedge accounting requirements

• Designing, implementing and testing/supervising the transition to the IFRS 9 provisions that will be applicable in future

• Defining and establishing a reporting system to meet disclosure requirements

IT systems

• Analyzing and designing system architectures and interfaces

• Selecting, introducing and optimizing suitable treasury management systems and reporting platforms

• Assuring quality and performing tests/inspections during projects to launch or improve IT systems

• Performing health checks for existing system environments with regard to process efficiency, functionality, system operations, costs and sustainability

• Designing and optimizing the treasury reporting system

Regulation, tax and law

• Providing tax advice on the design of the treasury organization and the treatment of financial transactions

• Analyzing implications and advising on implementation of financial market regulations (EMIR, MIFID, REMIT)

• Performing the mandatory EMIR compliance audit stipulated by the Securities Trading Act in Germany

• Advising on supervisory implications for treasury organization

• Analyzing the impact of tax-related and supervisory initiatives (FATCA, financial transaction tax, Basel III)

Selected dimensions of treasury activities

Cash and liquidity management

  • In-house bank
  • Liquidity planning
  • Liquidity analysis and management
  • Account statement processing
  • Financial status
  • Cash pooling
  • Cash management

Financial risk management

  • Risk-bearing capacity
  • Scenario analysis
  • Risk ratios
  • Credit risk management
  • Interest strategy
  • Currency hedging

Strategy, organization and processes

  • Finance company
  • People and expertise
  • Post merger integration
  • Process efficiency
  • Post carve-out development
  • Centralization
  • Compliance

Accounting and valuation

  • Hedge accounting
  • Market data supply
  • Market data supply
  • Embedded derivatives
  • CVA/DVA
  • Explanatory notes

left Wider definition

TREASURY 

Narrower definition long-arrow-right

Dimensions of treasury activities

Raw materials and energy management

  • Commodity hedge accounting
  • Simulations and risk limits
  • Exposure calculation
  • Hedging strategy
  • Market valuation Derivatives and supply agreements
  • Selection of commodity risk management system

Payment transactions

  • Payment factory
  • Mobile payments
  • Banking policy and eBAM
  • TWIST
  • Global payment formats
  • Bank connectivity

Regulation, tax and law

  • EMIR/ DFA/REMIT
  • Operating facilities
  • Financial transaction tax
  • MiFID II/ MiFIR
  • Charge rates and withholding tax
  • Impact of Basel III

IT systems

  • Platform design and selection
  • Interfaces
  • IT security
  • Cost optimization
  • Treasury reporting
  • System operation

Perfectly placed to serve you

A global network of interdisciplinary knowledge

The specialists in our team possess a wealth of hands-on knowledge in both content and methodology issues, as well as in matters relating to processes and system technology.

This repository of specialist knowledge on treasury-related challenges and trends is made available locally via the global FORFIRM network. It is complemented by the local teams ’in-depth knowledge of country-specific requirements.

Independence from providers and banks

The FORFIRM team maintains close working relationships with the leading IT providers and banks. At the same time, we maintain our own strict independence, focusing solely on the needs of our clients.

Methodological and specialist knowledge

Methodological and specialist knowledge covers a variety of aspects of financial and treasury management. FORFIRM firms are thus able to provide their clients with no-gaps solutions, meeting their treasury needs from a single source. Comprehensive support can be delivered for everything from organizational and process issues to IT solutions, reporting, accounting and regulatory matters.

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