Review of Treasury Operations

We evaluate treasury operations over a period to
  • Assess compliance with existing guidelines
  • Review effectiveness of treasury operations and hedging instruments
  • Analyze suitability and comprehensiveness of current policy / management guidelines
Typically, companies with established treasuries engage with us to get an independent, expert reading on their treasury operations; while the engagement is sometimes part of the internal audit, our approach provides an analytic report which can serve multiple purposes
  • Assure management including Audit \ Risk Management Committee, CFOs and treasury heads on process controls and regulatory compliance
  • Benchmarking with treasury best practices
  • Lay foundations for a comprehensive Risk Management System
  • Identify specific areas of enhancement such as MIS, cash management, internal controls, etc.
What is covered in a typical risk audit?

The scope of Risk Audit (which is not a financial audit) depends on the size of Treasury and client-specific requirements. As an example, for one of our clients we had covered the following and presented a report that was followed by management discussion.
  • Review of risks with a focus on policy aspect of Treasury Management
  • Transactional Risk
  • Translational Risk
  • Liquidity Risk
  • Interest Rate Risk
  • Review of operations with a focus on day-to-day treasury functioning
  • FX & Money Market Dealings
  • Hedging Activity
  • Risk Monitoring
  • Transfer Pricing
  • Review of organizational issues
  • Budgetary Process
  • Resource Allocation (inter-divisional)
  • Centralised Treasury / Group Treasury set-up
  • Investment Process
  • MIS
Review of treasury may also focus on specific areas such as use of derivatives or cash management, as required by the client company.