Technology and treasury, the perfect combination Steve Bullock, vice president, Kyriba NOHAFP Annual...
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Transcript of Technology and treasury, the perfect combination Steve Bullock, vice president, Kyriba NOHAFP Annual...
Technology and treasury, the perfect combination
Steve Bullock, vice president, KyribaNOHAFP Annual Idea ExchangeSeptember 21, 2015
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2
Technology? It’s just about process automation, right?
Automation of manual processes is the start of the journey, not the end.
How can technology improve treasury?
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
Add meaningful value throughout the business
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partner
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 6
Finan-cial Per-
for-mance
Risk Manage
mentOperational Im-provement
Business Continu-
ity
Regula-tory
Com-pliance
Drive improvements throughout the treasury process
Technology-based value drivers
It’s not just about giving you more time, it’s what you do with the time (and information).
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 9
Consolidation of positions, forecasts and exposures
Deliver confidence and accuracy for cash and liquidity projections (operational improvement)
Opportunity to optimize returns on excess cash Enables better risk management practiceso Reduced liquidity risko Reduced financial risk (better FX exposure visibility)
Increase global visibilityFinancial Perfor-mance
Risk Man-
agementOperational Improvement
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 10
Bank Fee Analysis measures pricing ‘activity’ accuracy In combination with other treasury data, can deliver: o Bank account usage vs. cost – for bank account
optimizationo Total cost of bank relationships, including trading
costs (a.k.a. total revenue banks receive from you)o Spreading around banking business more evenly
Financial Perfor-mance
Operational Im-provement
Streamline banking costs
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 11
Treasury is on the frontlineso Data securityo Protect financial assets
Best practices:o Payment controlso Outsource data security (the cloud)o SOC1 and SOC2 Audit Reportingo Monitoring and reconciliations
Opportunity to be an example to rest of the organization
Reduce exposure to cybercrime and fraud
Financial Per-formanceRisk Man-agement
Operational Im-provement
Business Con-tinuity
Regulatory Compliance
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 12
Fraud Prevention and Detection
Detection Prevention
Bank account reconciliation Sunset procedures
Application security One-time password, IP filtering
Daily reconciliation Reviewing daily bank transactions Bank fee analysis
Data security Encryption, penetration testing, audit certification
GL reconciliation Monthly true-up of bank to ledger
Bank account management Opening/closing, signatories
Task control center File and task monitoring, approval of workflow
changes
Payments Approvals, limits, automation, authentication
Audit trails Per transaction and system reporting
Financial transactions Controls, limits, settlements
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 13
Assessing the impact to the entire business of:o Basel III / LCRo SEC Money Market Fund Reformo FBAR & FATCA
Effect is more than just regulatory compliance What are the opportunities this presents for us? How can we be proactive instead of reactive?
Enhance regulation and compliance
Financial Perfor-mance
Risk Man-
agementOperational Im-provement
Regulatory Compliance
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 14
Free Cash Flow often a KPI
Treasury determines liquidity and working capital needs
Creates opportunity to collaborate with other teams to affect payables, receivableso Payables Financing o Receivables financing or saleo Metrics to support inventory management
Financial Perfor-mance
Risk Man-
agementOperational Im-provement
Improve working capital
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15
Treasury is key to M&A! Treasurers can help:
o Determine redundancies and cost savings in treasury / banking operations
o Measure impact on credit ratings, borrowing capacity, financial exposures, regulatory compliance
o Assess impact of currency/interest rates on price for and value of acquisition targets
o Advise on ideal capital structure and availability of financing options to finance deal
Financial Perfor-mance
Risk Man-
agementOperational Im-provement
Regulatory Compliance
Drive M&A process
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 16
Treasury can advise how to grow the businesso Treasury team structure – align financial team
structure with global needs to support businesso Market Expansion – identifying friendly markets
for tax treatment and cash movemento Cash and liquidity deployment – collaborating with tax to optimize cash
deployment/distributiono Payment strategies – Local payments, non-banking payment channels,
mobile payments
Business expansion
Financial Per-formance
Risk Man-agementOperational Im-
provementBusiness Con-
tinuity
Regulatory Compliance
Real-world example: Delphi Automotive
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 18
M&A Cash Management– Identify Cash Needs• Liquidity – Quickly identify and analyze available cash by region and by
currency.• Consolidation – Prepare for cash transactions or stock purchase payments.• FX Risk – Assess and mitigate risk related to payment timing through the
hedge process.• Connectivity – Visibility to new account transactions and balances through
SWIFT and FTP delivery. Improves timing and accuracy of cash position.• Acquisition cash position – Analyze new business units cash needs to
determine funding needs.
Mergers and Acquisitions
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 19
M&A Cash Management– Bank and Account Management• Bank Risk – Track and manage bank ratings for acquisition banks. Drive
decisions to maintain or migrate accounts to existing banks.• Signatories – Analyze and track new incoming accounts related to signors.
Central repository for account documentation.• Cost Reduction – Effectively analyze number of accounts and associated
fees.
Mergers and Acquisitions
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 20
Unit Sale and Discontinuing Operations– Segregation Activities• Identify Accounts – Account settings and reference tags allow timely identification of
related accounts and balances through reports. Division, Region, Business units etc.• Signatories – Identify and communicate with bank signors for closing and
transferring accounts. • Cash Consolidation – Cash Position reporting help Identify and move account
balances based on the terms of the agreement.• Regulatory Issues –Address challenges associated with moving cash from regions
with governmental restrictions.• FX and Commodity Risk – Analyze and adjust risk strategy for divested entities.
Divestitures
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 21
Unit Sale and Discontinuing Operations– Debt and Investment• Financial Instruments – Tracking of financial instruments such as Bank
Guarantees and Letters of credit linked to divesting entities.• Intercompany Loans – Identify and Analyze loans for settlement or transfer.• External Debt – Tracking and central repository for loan documentation.
Divestitures
Technology won’t take away your job.
Technology will take away the bits of your job that you don’t like as much.
© 2015 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 23
Q&A
1-855-KYRIBA-0
kyriba.com/blog
twitter.com/kyribacorp
linkedin.com/company/kyriba-corporation
Technology and treasury, the perfect combination
Steve Bullock, vice president, KyribaNOHAFP Annual Idea ExchangeSeptember 21, 2015