Treasury as a Strategic Partner: Creating New Value in the Organization Bob Stark – Vice...
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Transcript of Treasury as a Strategic Partner: Creating New Value in the Organization Bob Stark – Vice...
Treasury as a Strategic Partner: Creating New Value in the Organization
Bob Stark – Vice President, Strategy
2© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Treasury has a lot to manage every day!
Dodd-Frank
Sarbanes-Oxley
Bank signatoriesFraud
Spreadsheets
ERP
SEPA Mandates Global banking regulations
Compliance
Payments approvals
Interest rate fluctuation
FX volatilityAmortization
Pooling
In-house banking
Counterparty risk
Operational risk
Tax regulations
InvestmentHedge accounting
Netting program
Earnings Credit
Credit qualityEMIR
Trade confirmations
Letters of Credit
SWIFT
Positive Pay Exceptions
AccountingAvailability
Reporting, Reporting, Reporting
IFRS FAS Debt
3© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Productivity
Financial controls
Global visibility
Effective financial decisions
Single point of data entry• Eliminate re-keying errors• Improve accuracy and
confidence in analysis
Automate repetitive tasks• Shift time from processing to
analyzing• Achieve results more quickly
Streamline reporting• Automate and schedule
preparation and distribution
Treasury as a strategic partner
Value Creation Hierarchy
4© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Improve data integrity• Eliminate reliance on ‘super’
spreadsheets• Standardize processes and
procedures
Controlled workflow• Separation of duties• Reduce SOX audit costs
Centralized audit trails• Improve visibility and
transparency• Better control of workflowProductivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partner
Value Creation Hierarchy
5© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Productivity
Financial controls
Global visibility
Effective financial decisions
Cash • Bank reporting• Cash positioning• Forecasting• Liquidity
Financial positions• Investment• Debt• Intercompany • Foreign exchange
Exposures• Foreign exchange• Interest rate• Counterparty• Supply chain
Treasury as a strategic partner
Value Creation Hierarchy
6© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Productivity
Financial controls
Global visibility
Effective financial decisions
Excess cash and liquidity• Strategic investing• Debt repayment• Supplier discounts
Treasury movement/analysis• Bank fee analysis• Search for liquidity• Bi/Multi-lateral netting• Optimal funding/drawdown
(domestic or international)
Risk Management• Better hedging protection• Trading diversification• Standardized procedures
Treasury as a strategic partner
Value Creation Hierarchy
7© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partnerBuild value through collaborative business partnerships Intelligence Insight Analysis
Benefit to the organizationFinancial Per-
formanceRisk Man-agement
Operational Improvement
Business Con-tinuity
Regulatory Compliance
Value Creation Hierarchy
8© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Global Visibility• Consolidation of positions,
forecasts and exposures• Better cash and liquidity projections
Reduced liquidity risk, better FX visibility• Enables cash mobility and optimized
deployment Where can cash & liquidity be put to better
use than sitting in our bank accounts?
Financial Perfor-mance
Risk Man-
agementOperational Improvement
Opportunities to increase business value
9© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Banking Costs• 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
Fi-nan-cial Per-for-
mance
Operational Im-provement
Opportunities to increase business value
10© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Cybercrime and Fraud• Treasury is on the frontlines
o Data securityo Protect financial assets
• Best practices:o “Spear-Phishing” prevention policieso Payment Controlso Outsource data security (the cloud)o SOC1 and SOC2 Audit Reportingo Active monitoring and reconciliations
Opportunities to increase business valueFinancial Per-
formanceRisk Man-agement
Operational Im-provement
Business Con-tinuity
Regulatory Compliance
11© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Fraud Prevention and Detection
Detection PreventionBank Account Reconciliation
Sunset proceduresApplication Security
One-Time Password, IP Filtering
Daily ReconciliationReviewing daily bank transactions
Bank Fee Analysis
Data SecurityEncryption, Penetration Testing, Audit
Certification
GL ReconciliationMonthly true-up of bank to ledger
Bank Account ManagementOpening/Closing, Signatories
Task Control CenterFile & Task Monitoring, Approval of
workflow changes
PaymentsApprovals, Limits, Automation,
Authentication
Audit Trails Per transaction and system reporting
Financial TransactionsControls, Limits, Settlements
12© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Cybercrime and Fraud• Treasury is on the frontlines
o Data securityo Protect financial assets
• Best practices:o “Spear-Phishing” prevention policieso Payment Controlso Outsource data security (the cloud)o SOC1 and SOC2 Audit Reportingo Active monitoring and reconciliations
Opportunities to increase business valueFinancial Per-
formanceRisk Man-agement
Operational Im-provement
Business Con-tinuity
Regulatory Compliance
13© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Regulation & Compliance• Assessing the impact to the
entire business of:o Basel III / LCRo Money Market Fund Reformo SEPA, FATCA, FTT
• Effect is more than just regulatory compliance• What are the opportunities this presents for us?• How can we be proactive instead of reactive?
Opportunities to increase business valueFinancial Perfor-mance
Risk Man-
agement
Operational Im-provement
Regulatory Compliance
14© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Working Capital• 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
Opportunities to increase business value
15© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Mergers & Acquisitions• 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 & value of acquisition targets
o Advise on ideal capital structure & availability of financing options to finance deal
Financial Perfor-mance
Risk Man-
agement
Operational Im-provement
Regulatory Compliance
Opportunities to increase business value
16© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Business Expansion• Treasury can advise on ways
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
Opportunities to increase business valueFinancial Per-
formanceRisk Man-agement
Operational Im-provement
Business Con-tinuity
Regulatory Compliance
17© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Productivity
Financial controls
Global visibility
Effective financial decisions
Treasury as a strategic partnerBuild value through collaborative business partnerships Intelligence Insight Analysis
Benefit to the organizationFinancial Per-
formanceRisk Man-agement
Operational Improvement
Business Con-tinuity
Regulatory Compliance
Value Creation Hierarchy
18© 2015 Kyriba Corporation. All rights reserved. PROPRIETARY & CONFIDENTIAL.
Tips and tricks to becoming more strategic
• Get Involvedo Build relationships that get you
“in the room”
• Ideaso Don’t be shy, put your idea out there
regardless of how small or big it might be
• You can never automate too mucho You will still have a job, just a better one
• Pay attention to your technologyo Not all software is built the sameo Focus on what can enable you to achieve strategic benefit