Treasury Policy
Essential Compendium for a safe Financial Management
Functional processes need to be defined due to many reasons: safety, efficiency and consistency. Especially Treasury processes have quite a
high degree on complexity, because they are a kind of "Main Station" where all the trains come in and leave the station (whereas the main station
is in this metapher the company or group). Treasury connects Customers - Banks - Accounting - Management - Staff and Authorities.
A well structured Treasury Policy therefore shall consider following sections with the necessary respect and accuracy. When we introduce
Treasury Policies at our customers, the framework looks like this:
1. Treasury Manual
This is the frame of the whole policy. One may compare it with an enhanced binder of a large book. This manual, same like all other parts of the
treasury policy, is a guideline, process- and responsibility description and regulatory key element of the group's overall financial policy. Considered
in the manual, i.e. the binder, are the general treasury processes, responsibilities and reportings and how the policy itself is structured - and, last
but not least, what the purpose and role of Treasury is.
1.1 Overview of the Group Treasury Function
1.1.1. General Principles
1.1.2 Treasury Functions and Responsibilities
1.1.3 Position within the Group
1.2. Policies and Guidelines based on the Group Treasury Strategy (Details see below)
1.2.1 Treasury Master Agreement
1.2.2 Corporate Finance (evtl. incl. Capital Management)
1.2.3 FX and Risk- Management
1.2.4 Cash Management
3. Measurement, Reporting and Control
3.1 Liquidity Reserves
3.2 Liquidity- and Finance Reporting
3.3 Exeptional Reporting
The key element of the professional and meaningful Treasury policy is chapter 2. The specific Treasury items are managed separately, because
on the one hand the requirements to a Treasury policy is not in all groups the same and on the other hand, with this specialization an utmost
possible flexibility is ensured when single items need to be revised.
Get here comprehensive Treasury Policy Templates
2. Policies and Guidelines based on the Group Treasury Strategy
2.1 Treasury Master Agreement
This part is responsible for all legal matters. It is the frame-work for all kind of transactions, whether it is for settlements, loan-management, cash
pooling, netting, power of attorney, what to do in case a party is in default and so on.
2.2 Corporate Finance
Defines the tasks, duties and responsibilties for all kind of bank relationships, financing matters and financial competences.
2.3 FX and Risk Management
Gives guidance and regulates the processes for managing the group’s fx general issues and in particular the foreign exchange risk. This is a
separate policy.
2.4 Cash Management
This manual is responsible for the heart of every Treasury, because all kind of cash flows are going through the Cash Management. It defines the
daily management of payments, cash pooling, netting, account management, short-term investments and -borrowings, interest rate matters etc.
high degree on complexity, because they are a kind of "Main Station" where all the trains come in and leave the station (whereas the main station
is in this metapher the company or group). Treasury connects Customers - Banks - Accounting - Management - Staff and Authorities.
A well structured Treasury Policy therefore shall consider following sections with the necessary respect and accuracy. When we introduce
Treasury Policies at our customers, the framework looks like this:
1. Treasury Manual
This is the frame of the whole policy. One may compare it with an enhanced binder of a large book. This manual, same like all other parts of the
treasury policy, is a guideline, process- and responsibility description and regulatory key element of the group's overall financial policy. Considered
in the manual, i.e. the binder, are the general treasury processes, responsibilities and reportings and how the policy itself is structured - and, last
but not least, what the purpose and role of Treasury is.
1.1 Overview of the Group Treasury Function
1.1.1. General Principles
1.1.2 Treasury Functions and Responsibilities
1.1.3 Position within the Group
1.2. Policies and Guidelines based on the Group Treasury Strategy (Details see below)
1.2.1 Treasury Master Agreement
1.2.2 Corporate Finance (evtl. incl. Capital Management)
1.2.3 FX and Risk- Management
1.2.4 Cash Management
3. Measurement, Reporting and Control
3.1 Liquidity Reserves
3.2 Liquidity- and Finance Reporting
3.3 Exeptional Reporting
The key element of the professional and meaningful Treasury policy is chapter 2. The specific Treasury items are managed separately, because
on the one hand the requirements to a Treasury policy is not in all groups the same and on the other hand, with this specialization an utmost
possible flexibility is ensured when single items need to be revised.
Get here comprehensive Treasury Policy Templates
2. Policies and Guidelines based on the Group Treasury Strategy
2.1 Treasury Master Agreement
This part is responsible for all legal matters. It is the frame-work for all kind of transactions, whether it is for settlements, loan-management, cash
pooling, netting, power of attorney, what to do in case a party is in default and so on.
2.2 Corporate Finance
Defines the tasks, duties and responsibilties for all kind of bank relationships, financing matters and financial competences.
2.3 FX and Risk Management
Gives guidance and regulates the processes for managing the group’s fx general issues and in particular the foreign exchange risk. This is a
separate policy.
2.4 Cash Management
This manual is responsible for the heart of every Treasury, because all kind of cash flows are going through the Cash Management. It defines the
daily management of payments, cash pooling, netting, account management, short-term investments and -borrowings, interest rate matters etc.
Contact us, we would be glad to show you the possible opportunities!
Download templates for all above
mentioned documents here
Treasury Policy
Essential Compendium for a safe Financial Management
Functional processes need to be defined due to many reasons: safety,
efficiency and consistency. Especially Treasury processes have quite
a high degree on complexity, because they are a kind of "Main
Station" where all the trains come in and leave the station (whereas
the main station is in this metapher the company or group). Treasury
connects Customers - Banks - Accounting - Management - Staff and
Authorities.
A well structured Treasury Policy therefore shall consider following
sections with the necessary respect and accuracy. When we introduce
Treasury Policies at our customers, the framework looks like this:
1. Treasury Manual
This is the framework of the whole policy. One may compare it with an
enhanced binder of a large book. This manual, same like all other
parts of the treasury policy, is a guideline, process- and responsibility
description and regulatory key element of the group's overall financial
policy. Considered in the manual, i.e. the binder, are the general
treasury processes, responsibilities and reportings and how the policy
itself is structured - and, last but not least, what the purpose and role
of Treasury is.
1.1 Overview of the Group Treasury Function
1.1.1 General Principles
1.1.2 Treasury Functions and Responsibilities
1.1.3 Position within the Group
1.2 Policies and Guidelines based on the Group Treasury
Strategy (Detail see below)
1.2.1 Treasury Master Agreement
1.2.2 Corporate Finance (evtl. incl. Capital Management)
1.2.3 FX and Risk- Management
1.2.4 Cash Management
1.3 Measurement, Reporting and Control
1.3.1 Liquidity Reserves
1.3.2 Liquidity- and Finance Reporting
1.3.3 Exeptional Reporting
The key element of the professional and meaningful Treasury policy is
chapter 2. The specific Treasury items are managed separately,
because on the one hand the requirements to a Treasury policy is not
in all groups the same and on the other hand, with this specialization
an utmost possible flexibility is ensured when single items need to be
revised.
Get here comprehensive Treasury Policy Templates
2. Policies and Guidelines based on the Group Treasury
Strategy
2.1 Treasury Master Agreement
This part is responsible for all legal matters. It is the frame-work for all
kind of transactions, whether it is for settlements, loan-management,
cash pooling, netting, power of attorney, what to do in case a party is
in default and so on.
2.2 Corporate Finance
Defines the tasks, duties and responsibilties for all kind of bank
relationships, financing matters and financial competences.
2.3 FX and Risk Management
Gives guidance and regulates the processes for managing the group’s
fx general issues and in particular the foreign exchange risk. This is a
separate policy.
2.4 Cash Management
This manual is responsible for the heart of every Treasury, because all
kind of cash flows are going through the Cash Management. It defines
the daily management of payments, cash pooling, netting, account
management, short-term investments and -borrowings, interest rate
matters etc.
Contact us, we would be glad to show you the possible
opportunities!
a high degree on complexity, because they are a kind of "Main
Station" where all the trains come in and leave the station (whereas
the main station is in this metapher the company or group). Treasury
connects Customers - Banks - Accounting - Management - Staff and
Authorities.
A well structured Treasury Policy therefore shall consider following
sections with the necessary respect and accuracy. When we introduce
Treasury Policies at our customers, the framework looks like this:
1. Treasury Manual
This is the framework of the whole policy. One may compare it with an
enhanced binder of a large book. This manual, same like all other
parts of the treasury policy, is a guideline, process- and responsibility
description and regulatory key element of the group's overall financial
policy. Considered in the manual, i.e. the binder, are the general
treasury processes, responsibilities and reportings and how the policy
itself is structured - and, last but not least, what the purpose and role
of Treasury is.
1.1 Overview of the Group Treasury Function
1.1.1 General Principles
1.1.2 Treasury Functions and Responsibilities
1.1.3 Position within the Group
1.2 Policies and Guidelines based on the Group Treasury
Strategy (Detail see below)
1.2.1 Treasury Master Agreement
1.2.2 Corporate Finance (evtl. incl. Capital Management)
1.2.3 FX and Risk- Management
1.2.4 Cash Management
1.3 Measurement, Reporting and Control
1.3.1 Liquidity Reserves
1.3.2 Liquidity- and Finance Reporting
1.3.3 Exeptional Reporting
The key element of the professional and meaningful Treasury policy is
chapter 2. The specific Treasury items are managed separately,
because on the one hand the requirements to a Treasury policy is not
in all groups the same and on the other hand, with this specialization
an utmost possible flexibility is ensured when single items need to be
revised.
Get here comprehensive Treasury Policy Templates
2. Policies and Guidelines based on the Group Treasury
Strategy
2.1 Treasury Master Agreement
This part is responsible for all legal matters. It is the frame-work for all
kind of transactions, whether it is for settlements, loan-management,
cash pooling, netting, power of attorney, what to do in case a party is
in default and so on.
2.2 Corporate Finance
Defines the tasks, duties and responsibilties for all kind of bank
relationships, financing matters and financial competences.
2.3 FX and Risk Management
Gives guidance and regulates the processes for managing the group’s
fx general issues and in particular the foreign exchange risk. This is a
separate policy.
2.4 Cash Management
This manual is responsible for the heart of every Treasury, because all
kind of cash flows are going through the Cash Management. It defines
the daily management of payments, cash pooling, netting, account
management, short-term investments and -borrowings, interest rate
matters etc.
Contact us, we would be glad to show you the possible
opportunities!
Download templates for all above
mentioned documents here
