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8/3/2019 EY Treasury Management Services
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Treasury managementPerformance-driven solutions
8/3/2019 EY Treasury Management Services
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SummaryOrganization and governance 5
Performance assessments:
towards best practice 6
Financial risk management 8
Cash and liquidity management 9
Corporate funding 10
Financial instruments valuation
and accounting 11
Treasury technology 12
Assurance and control 13
Contacts 14
8/3/2019 EY Treasury Management Services
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The evolving treasury function
A challenging contextThe demands on corporate treasury departments are subject to
constant change with, for instance, an increasing requirement of
shareholders for companies to demonstrate how financial
resources and financial risks are managed. These requirements forincreased transparency and control have led to a global trend
toward centralization of treasury activities. In addition, treasurers
need to cope with a growing complexity of financial instruments,
ever more volatile financial markets and the introduction of new
regulations and accounting practices. For treasury, this means that
you need to update continuously your know-how, to ensure
reduction of costs, minimize volatility, bring value to the company
and ensure short and expansive lines of communication.
Your goals — our missionWe will help you to define clearly the responsibilities of treasury
and to engage further in supporting the business. We have the
required know-how and expertise available for all the importanttopics of treasury (for example, cash and liquidity management,
financial risk management, accounting, system utilization). In
addition, we will confirm whether the internal control environment
of your treasury is in accordance with statutory requirements and
market practices.
More than ever, it is important to adopt an integrated holistic
approach instead of pursuing temporary solutions for individual
issues.
Our offerThe growing demands on the treasury function are driven to a
large extent by the current market situation. They are associatedwith a heightened awareness of management for operational and
financial risks, focused on the following themes:
• Improvement of cash-forecasting quality and methodologies for
liquidity management and financial planning
• Management of derivatives, market price and counterparty risks
• Accounting and valuation of all treasury transactions
In parallel, there is continual pressure to improve the efficiency of,
and control over, treasury.
Ernst & Young provides you with a portfolio of services that cover
the full scope of a treasury function. We have a knowledgeable
team, with the right combination of treasury skills and experienceto support your treasury through all types of challenges.
TopicsOur primary Treasury services cover the following areas:
• Treasury organization & governance
•Treasury performance assessments
• Financial risk management, (interest, FX, credit and commodity
risks)
• Cash and liquidity management including cash forecasting
• Corporate funding and capital management
• Treasury technology, including Treasury Management System
TMS selection and implementation
• Valuation and accounting for financial instruments (IFRS and
local GAAP)
• Audit, Quality assurance & compliance
Your benefits
• Integrated service offering
• Powerful, customized approaches• Rapid, sustainable knowledge transfer
• Solid process embedment
• Holistic perspective
• Profit from Ernst & Young’s global Treasury network and
multinational team
Which service offers you the competitive
advantage?
• Self Assessment using our proven analytical methodology
• Analysis of potential improvements, based on your current
situation
• Individual approaches to address any weaknesses identified
• Quick check of accounting policies and hedge relationships
Make an appointment and talk to us. We are happy to inform in
detail about how we can help you drive your treasury forward.
I m p l e men ta t i o n
P l a n n i n g
S trategy
Q
u a
l i t y
a s s u r a n c e
Treasury
management
Assurance& control
Treasurytechnology
Valuation &accounting
Corporatefunding
Cash - andliquiditymanagement
Financial riskmanagement
Performanceassessments
Organization& governance
3Ernst & Young Treasury management
8/3/2019 EY Treasury Management Services
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8/3/2019 EY Treasury Management Services
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Organization and governanceOrganization& governance
Performanceassessments
Financial riskmanagement
Cash - andliquidity
management
Corporatefunding
Valuation &accounting
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Choosing the right organizationWith the increasing importance of treasury,
companies must choose a robust and
dynamic organizational structure. In
particular, a well thought-out strategic,
forward-looking approach is essential. This
begins with choosing the right operating
model. In order to do this, the scope of
activities that are covered by the treasuryDepartment and the degree of
centralization must be determined. Does
treasury execute only the most necessary
activities such as liquidity management or
if treasury is determined a “core”
organizational process – does it cover the
full range of services? This must be taken
into account when designing the optimal
hierarchical structure of the central and/or
local treasury functions.
Reorganization and
transformationDue to changing circumstances, e.g,
transactions such as mergers and
acquisitions, carve outs, spin offs and as
part of reorganization projects such as
enterprise resource planning (ERP)
implementation and centralization of
treasury functionality, a reformulation of
the organizational structure, processes and
financial risk management is needed.
Our servicesUsing a gap analysis of your current
treasury structures compared with the
requirements according to your strategic
objectives, we make recommendations for
choosing the right organization and
optimizing the treasury function. This leads
to, inter alia, improved communication and
reporting processes and identifies process
duplication and redundancies.
We accompany you along the whole
process: from definition of objectives to
implementing a new or revised organization
of the governance structure and underlying
processes.
Current state analysis
• Analyzing the current state compared
with ”leading practices” and established
control requirements• Assessing the systems and
methodologies, focused on identification
of potential improvements
Future state development
• Defining the target organization given
the objectives, identifying leading
practices that are both fit for purpose
and focused on value optimization
• Defining, updating or standardizing
policies, processes and procedures for:
• Banking network (banking selection
and rationalization)• Cash management (pooling/ netting)
• Short- and medium-term financing
(e.g., factoring and securitization)
• Financial risk management (strategy
optimization)
• Treasury accounting
• Defining and adjustment of (key)
management indicators
• Selecting and implementing TMS(s)
• Defining roles and responsibilities, job
descriptions and provide assistance
towards recruitment and/or secondment
placement
Implementation support
• Project planning and management
(objectives, resources, milestones)
• Identifying and implementing “quick
wins”
• Assist with planning and implementation
of a rollout of the new global structure
• Additional organizational knowledge
through workshops covering operations,accounting, finance, legal, tax services
and information systems
• Interim staffing of operational or control
functions (when allowed)
Your benefits
• Realignment of the treasury to meet
current and future economic and
regulatory requirements
• Realization of potential synergies and
efficiencies by optimizing treasury
processes
5Ernst & Young Treasury management
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Performance assessments:
towards best practicePerformanceassessments
Organization& governance
Financial riskmanagement
Cash - andliquidity
management
Corporatefunding
Valuation &accounting
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Key factors Basics Developing Established Leading class
Policies and
procedures
Informal policies and procedures notdocumented.
High level policy statements setting out centraltreasury activities. Limited documentedguidance on local treasury activities andincomplete procedure documentation.
Well documented group treasury policy andprocedures. Limited policies and procedureson treasury activities in local business units.
Comprehensive policy document for grouptreasury and the business units.
Governance Treasurer or group FD responsible for allaspects of treasury. No compliance monitoringor internal audits.
Regular reporting to the board on treasuryactivities. Internal audits not performed bytreasury experts. Minimal compliancereporting.
Treasury compliance regularly monitored andreported to the board and/or the relevanttreasury/finance committees. Regular internalaudits using external treasury sprecialists.
Treasury activities monitored by and treasurystrategy approved by Board or boardsubcommittee. Regular internal audits bytreasury experts with treasury selfassessments.
Structure Decentralised treasury structure with localbusinesses responsible for managing their owntreasury activities. Little/no interactionbetween Group Treasury and Groupcompanies.
Centrally managed funding with businessesresponsible for managing local treasuryactivities. Some interaction between GroupTreasury and Group companies.
Centralised treasury with clear guidelinesgoverning any local treasury operations.Communication between group treasury andgroup companies on an informal basis.
Centralised treasury with all treasury activitymanaged by group t reasury (as far aspossible). Regular dialogue between grouptreasury and business units.
People and skills Treasury activities are performed by personnelwith little or not treasury experience. Treasuryusually performed by finance staff on parttime basis.
Dedicated treasurer with inexperiencedassistant(s) and support staff.
Experienced and established team withappropriate professional qualifications/qualified by experience in key positions. Goodknowledge of all aspects of treasury and of thecompany’s business.
Experienced and qualified professionals in allkey positions within treasury. Good knowledgeof treasury activities and experience ofworking in a multinational treasury function.
Treasury function maturity
Current state analysisOur performance assessment can be the
first step towards developing a risk-and
profit-oriented, comprehensive view of
your treasury activities. Based on our
treasury experience and peer comparison
in the market, we identify potential points
for improvement and further development
potential.The thorough investigation of structures
and processes and their comparison with
the legal framework and market practices
are the foundation of our treasury
advisory’s holistic approach.
Our servicesErnst & Young has developed a specific
framework for assessing functional
performance of a treasury department,
which is based on our global experience with
treasury organizations, regular treasury
projects and client surveys. In addition,
external benchmarks and guidelines are
taken into account, for example, from localAssociations of Corporate Treasury, IFRS7
and the local Corporate Governance Code.
The many facets of corporate treasury
require a practical and pragmatic
interpretation of relevant regulations, which
need to be considered in the broader context
of the complexity and risks of the company.
Taking into account external market trends,
as well as our extensive industry
experience, we have developed a compact
corporate treasury checklist that allows a
comprehensive benchmarking against
leading practices and provides a quick
insight into potential improvements.
In addition, the ”maturity” of the treasury
function is assessed compared with well-established, ”leading” treasury
organizations, while taking into account the
firm-specific characteristics.
6 Ernst & Young Treasury management
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Company XYZ: Treasury management — Process Efciency — Maturity Assessment Dashboard
The main themes covered in a Treasury Assessment are:
• Treasury organization, strategy and systems
• Integration into the company’s strategy, rules and responsibilities
• Management of financial risks (e.g., interest rate, currency andcommodity risks)
• Liquidity and cash management
• Internal control
• Performance measurement
• Reporting
Your benefitsBased on the analysis, you receive an assessment of your treasury
organization compared with leading practices, with individual
recommendations for potential further improvements and
significant risks.
This assessment enables you to determine priorities and — if
applicable — define an action plan, for implementation
7Ernst & Young Treasury management
Weighted scores Maturity profile — Weighted
Dimensions Currentstate
Futurestate
Leadingpractice
Operational strategy 2.0 3.0 5.0
Process & policy 3.0 4.0 5.0
People &organization
2.0 3.5 5.0
Technology & data 3.5 4.0 5.0
Performancemanagement
3.0 3.0 5.0
Vertical maturityindex
3.0 3.5 5.0
Vertical maturityindex (%)
60.0% 70.0% 100.0%
Raw — Equal dimensions Maturity profile — Raw — Equal dimensions
Dimensions Currentstate
Futurestate
Leadingpractice
Operational strategy 2.5 3.0 5.0
Process & policy 3.0 4.0 5.0
People &organization
2.0 3.0 5.0
Technology & data 4.0 4.5 5.0
Performance
management3.0 3.5 5.0
Vertical maturityindex
3.0 3.5 5.0
Vertical maturityindex (%)
60.0% 70.0% 100.0%
Raw scores — Equal questions Maturity profile — Raw — Equal questions
Dimensions Currentstate
Futurestate
Leadingpractice
Operational strategy 3.5 4.0 5.0
Process & policy 3.0 4.0 5.0
People &organization
2.0 3.0 5.0
Technology & data 4.0 4.5 5.0
Performancemanagement
3.0 3.5 5.0
Vertical maturity
index
3.5 4.0 5.0
Vertical maturityindex (%)
70.0% 80.0% 100.0%
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Financial risk management
Financial riskmanagement
Organization& governance
Performanceassessments
Cash - andliquidity
management
Corporatefunding
Valuation &accounting
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Financial risk managementStrong market volatility, constant evolution
of the international accounting standards
and increasing importance of financial
reporting prompt companies to improve
regularly their financial risk knowledge and
to optimize its management. In this
environment identification of risk drivers
and exposures, definition of riskmanagement policy and implementation of
appropriate management tools,
communication lines and reporting are the
key means to enable effective financial risk
management.
Treasury and financial derivativesIn order to control financial risks, most
treasury departments, inter alia, use
financial derivatives. The hedging
strategies need to be aligned with the
overall objectives of the company, while
ensuring that valuation methods forderivatives do not lead to unwanted
volatility of profits. In addition, a consistent
separation of functions in risk management
and appropriate monitoring systems are
needed.
Major risksThe key financial risks that treasury needs
to identify, quantify, manage and monitor
are liquidity, FX, interest rate and
counterparty risks. An increasing number
of companies are also active in commodity
or energy risk management.
Our servicesBased on our extensive experience, we
provide advice and support for all elements
of financial risk management, for example:
• Identifying the main sources of financial
risk exposure and measuring the
company’s “natural” hedging
effectiveness
• Co-developing a strategy for financial riskmanagement within the group’s financial
supply chain
• Development and validation of models to
quantify and monitor financial risks,
including VaR, EaR, Gap and scenario
analysis
• Integration of more complex financial
products into your information systems
• Implementing appropriate (hedge)
accounting to reflect adequately the
(economic) exposures, including hedge
effectiveness testing• Develop appropriate reporting to enable
effective monitoring and steering of
financial risks by management
The financial crisis has demonstrated that
methods that seem to work in “normal
circumstances” may fail in the case of
major calamities. For example, a significant
interaction between market prices,
collateral demand, liquidity and credit
quality occurred. Therefore, the creation of
an overall corporate financial risk
framework is a central aspect of ourTreasury Advisory approach.
Your benefitsWe will assist in further developing and
strengthening the understanding of the
financial risk management strategies to
help you best achieve your business goals,
both economically and in terms of financial
reporting.
This includes an adequate organizational
structure and infrastructure (policies,
controls, processes, models, etc.) as well
as the development of methods and
processes for quantifying, assessing and
monitoring financial risks.
Together we will develop scenarios and
stress-testing methods, including
emergency plans that are tailored to your
company’s risk profile and classification so
that you are fully prepared to handle crisis
situations.
8 Ernst & Young Treasury management
Identity Diagnose Design Deliver Sustain
K e y T a s k s • Analyze and comment on
current XYZ riskmanagement framework
• Understand and validatethe current state of XYZFX risk managementframework
• Analyze impact of FX riskmanagement frameworkon XYZ’s results
• Formulaterecommendations toimplement enhancedXYZ risk managementframework
• Post implementationanalysis ans sustainableimprovement plan
A c t i v i t i e s
• Understand XYZ businessstructure, economicmodel and transactionalflows
• Conduct FR risk exposureanalysis of XYZ FXporfolio
• Analyze current XYZ FXrisk management policyand hedging framework
• Analyze businessplanning schedule andcycle vs. FX risk forecastschedule and cycle andcomment on potentialimprovement
• Assess and validate thecurrent state of XYZ FXrisk managementframework
• Define criteria for itsevaluation andunderstand XYZ desiredfuture state
• Assess accountingschemes and impact ofFX risk managementframework on XYZ’sresult for both statutoryand managementreporting
• Identify Benchmarkcompetitors (MNC) interms of FX riskmanagement
• Set FX managementobjectives consideringlinkage withshareholders’ value
• Define XYZ’s FX risktolerance taking intoaccount XYZ’s businessdynamics
• Design/Enhance XYZ’sFX risk managementpolicy and hedgingframework
• Formulaterecommendations ofpotential benefits ofusing or not using hedgeaccounting
• Analyze impact on:
• SAP ECC 6.0 andSAP-FSCM
• SOX controlframework
• Develop the approachand requirements for theselected improvementsas stated in the new FXrisk management policy
• Design/Enhance the FXrisk management manual
• Validate the newlydesigned FX riskmanagement framework
• Analyze impact andredesign of FX riskmanagement frameworkon stratutory accounting,management reportingand SOX controlframework
• Support on FX riskManagement frameworkimplementation
• Confirm the newlydesigned FX riskmanagement frameworkis operating as intendedand capture lessonslearned (KPIs,performancemanagement reporting)
• Perform test of design toidentify performancegaps of the newlydesigned FX riskmanagement framework
• Implement an ongoingmonitoring program
• Identify furtheropportunities to extendthe benefits across theXYZ group
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Cash and liquidity management
Cash - andliquidity
management
Organization& governance
Performanceassessments
Financial riskmanagement
Corporatefunding
Valuation &accounting
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Cash remains KingThe ability of companies to manage
liquidity and loans is scrutinized with ever
more attention by financial markets and
stakeholders. During the financial crisis,
the capacity of a firm to generate liquidity
has re-emerged as the priority. Treasury
plays a central role in monitoring liquidity
risks, setting up cash-flow forecasting andplanning and reporting on liquidity buffers,
relevant financial covenants and other
‘key-indicators’ for liquidity risk.
Stress tests are becoming increasingly
important to monitor potential liquidity
risks. These should reflect both company
specific and market-wide scenarios and are
based on historical market trends, while
also mapping hypothetical - but possible -
future business scenarios. Based on these
tests, liquidity constraints can be identified
to be taken into account in your planningand risk control.
Our servicesWe help you to focus and optimize the
methodologies for cash and liquidity
management and monitoring liquidity risks.
We will assist you to:
• Define a liquidity risk management
strategy, policy and procedures
• Review your company’s local, regional,
and global cash collection, disbursement
and bank account structure• Develop cash pooling solutions, ranging
from architecture and processes to the
request for proposal (RFP) and bank
shortlist
• Develop or review methodologies for
cash-flow forecasting and variance
analysis procedures
• Review or select systems and technology
used in the cash forecasting process
• Optimize the cash and liquidity
management processes and structures in
alignment with global tax strategies
• Assess and reorganize cash managementactivities (for instance, methodology to
implement shared service centers)
• Develop a framework for structured
monitoring of key indicators for liquidity
risk
• Enhance cooperation from local
management
Your benefitsWe are able to guide you through the
optimization of the financial resources of
your company (cash management and
funding) and detect the best path to followto ensure that cash is effectively managed.
We will assist you in assessing cash
forecasting reliability and process adequacy
as well as executing or designing an
adequate cash forecasting model.
In addition, we have the right knowledge to
assist you in securing your payments
means, more effectively leveraging on
Single Euro Payments Area (SEPA) and
other changes in the payments landscape.
50% of large companies
have not implemented
homogenized procedures
to forecast their cash
flows.
34% of companies do notanalyze the variances
between real cash flows
and forecasts
systematically, in order to
make the necessary
improvements.
Source: Ernst & Young European Treasury
Survey
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Corporate funding
Corporatefunding
Organization& governance
Performanceassessments
Financial riskmanagement
Cash - andliquidity
management
Valuation &accounting
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Funding strategyIn today’s financial context with recurrent
liquidity tensions and increases in funding
costs, the control of liquidity risks is of
strategic importance to companies. Access
to a substantial and diverse ”pool” of
financing is a security interest, providing
companies with the flexibility to adjust their
financial strategy. Regulatory, legal, taxand accounting constraints complicate both
the assessment and the implementation of
financing solutions.
In this environment, the key factors to
success in the financing function of
treasury are:
• The definition of an optimal funding
strategy, to optimize financing costs
while at the same time minimizing
liquidity risks
• The set up of appropriate in-house
banking structures in a complex
regulatory and tax environment
• Effective bank and investor relationship
management
• Effective management of the financial
documentation supported by
management and control
Our servicesOur services cover the full range of
financing activities, from defining the
strategy to support in negotiating and
implementing a financing arrangement.
Define the financing strategy
• Identification of the medium and long
term financing needs
• Develop a methodology for forecasting
and monitoring financing needs and
financial covenants
• Practical examination of the borrower
and its group in terms of banking loans
and/or intra-group and concerning therecurrent and exceptional guarantees
granted to third parties
• Identification of the financing structures
diversity possibilities. For example, bond/
MTN issues, money market, open market
or syndicated banking credit/loan,
securitization, project financing, sale/
lease back and factoring
Negotiate financing
• Implement a ”call for tenders” / RFP
procedure, including the assistance in
preparing term sheets to supportnegotiations with banks
• Examination and negotiation, with the
assistance of legal advisors, of the
financing arrangements
• Second opinion on offered financing
arrangements, including pricing of
(embedded) derivatives and key
covenant implications
• Analysis of the implied credit risk of the
company, based on the credit spread
included in the financing arrangement
• Analysis and advisory on tax and/oraccounting operations treatments
Implementation support
• Assist with implementing the necessary
structures and teams to manage the
financing needs
• Set up an in-house bank, including a
transfer pricing policy for financial
instruments and guarantees
• Provide tax constraint management
while preserving an acceptableadministrative management level (e.g.,
withholding tax, interests’ deduction,
stamp duty and VAT)
Your benefits
• Appropriate structures, procedures and
systems to determine and manage the
financing strategy of the company
• A financing strategy which is tailored to
meet the organizational, legal,
regulatory, fiscal, contractual and
accounting constraints
• Support in reaching optimal financingcosts and appropriate diversification of
funding sources
10 Ernst & Young Treasury management
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Financial instruments
valuation and accounting
Valuation &accounting
Organization& governance
Performanceassessments
Financial riskmanagement
Cash - andliquidity
management
Corporatefunding
Treasurytechnology
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
The solid base — or did you feel it
shaking, too?Reliable information is the basis of your
decisions. The valuation of your financial
instruments is, inter alia, the foundation for
measuring and managing risks and taking
strategic decisions. If this foundation is not
stable, the whole “building” is in danger.
Due to the volatility in the financial
markets, the assessment and valuation of
financial instruments has become more
complex. Counterparty and liquidity risks
have to be quantifiable components of your
risk assessments and valuations.
With the increasing use of derivative
instruments, it is important to keep the
accompanying, sometimes very complex,
accounting rules in mind to ensure that the
accounting results are in line with the
economic rationale of your hedging
strategy.
Our servicesFor Ernst & Young, valuation and
accounting are essential core
competencies. Our goal is to translate this
knowledge to add value to our clients. Our
support services can be divided here as
follows:
Valuation
• Valuation of complex financial
instruments, including embedded
derivatives and personnel options
• Modeling and valuation of complex
derivatives
• Quantification of credit risks/spreads and
impacts on valuation
• Valuation and hedging in illiquid markets
Accounting for financial
instrumentsWe assist you in applying the (hedge)
accounting provisions of IAS 39 or your
local GAAP, in particular:
• Preparation or review of your accounting
policy compared with leading practices
• Design and optimization of hedge
accounting procedures
• Measurement of hedge effectiveness
• Support in applying the de-recognitionrequirements so that a reliable
accounting of asset backed securities,
transactions, factoring, etc. is achieved
• Reviews of large portfolios
• Provide accounting advice for the
issuance of mezzanine capital, such as
convertible bonds, hybrid bonds
• Knowledge transfer and training to the
treasurers and relevant operating units
Finally, we support you in the application of
disclosures and risk assessment-related
information according to IFRS7.
Accounting for commodities and
energy derivatives
• Valuation of energy derivatives, such as
virtual power plants and modeling of
electricity spot prices (Hourly Price
Forward Curve)
• Application and interpretation of the
‘”own use exemption”
• Industry-specific features (energy andutilities sector)
• Hedge accounting for commodity
derivatives, including emission rights
Your benefits
• Experience in financial instruments and
valuation
• Skills for modeling and quantifying risks
and valuing derivatives
• Forward-looking statements by use of
various solid valuation methods
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Treasury technology
Treasurytechnology
Organization& governance
Performanceassessments
Financial riskmanagement
Cash - andliquidity
management
Corporatefunding
Valuation &accounting
Assurance& control
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Technology: the core of treasuryTMS has a central role in the control
environment of treasury, as it provides
functionality for front, middle and back
office activities and controls, with a trend
toward ”straight-through-processing”. In
addition, the TMS provides the basis for
critical information such as forecasting,
valuation and reporting. It is thereforeessential to ensure that the system aligns
with the company’s requirements and is
adequately configured and implemented.
At the same time, the range of offers in the
software industry is becoming more and
more complex due to significant evolutions
in technologies and approaches. In the
current economic environment
characterized by the concentration of
vendors, IT solutions tend to widen their
scope of functionalities, covering needs
from market activities to cash managementas well as banking communication.
Our servicesSelecting a solution that fits your needs
Together with you we identify your treasury
organization’s current and future business
requirements. This analysis should not only
focus on functional requirements but also
on technical and vendor-related aspects.
Based on this analysis and our extensive
knowledge of the TMS market we provide:
• Advice on vendors to be considered in astructured selection process
• Support in development of a RFP, based
on existing ‘proven’ templates
• Management of the complete RFP
process, including vendor communication
• Advice on the vendor responses
• Facilitation of vendors demos, ”Proof-of-
concept” and/or reference visits
• Assistance with the preparation of the
cost/benefit analysis and business plan
Support and guidance in the
implementationTo ensure that IT systems quickly and
seamlessly fit into the business of your
treasury, we will guide you in the
implementation through:
• Overall program and/or project
management
• Conduct design workshops and prepare
design documents (blueprints)
• Define and configure static data
• Prototype instruments and unit test
• Define reporting requirements
• Reconcile static data
• Develop and perform testing programs
and scripts
• End-user training
In addition, we provide quality assurance
through all parts of the implementation
project.
Your benefits
• Optimal alignment of treasury
technology to your requirements
• Fast and efficient integration of systems
into the process
• Extensive TMS knowledge and provenmethodologies for system selections and
implementations
• Independence in choosing a system
provider
• Sustainable knowledge transfer
Forecasting system Risk management system Accounting system Repor ting system
Treasury Management System
Interest rate risk
FX risk
Credit risk
Commodity
Cash management
Liquidity management
Corporate finance
Treasury accounting
Back-office
Treasury control & reporting
Market data systems
Bank systems
Trading platforms
Confirmationsystems
• Strategicscope
P h a s e 0
P h a s e 1
Duration
P h a
s e 2
• Request for Information• Motivated long list
• Motivatedshort list
• Test agenda
• Final report withrecommendations
Analyse system integrationEY systemsknowledge base
Project startand planning
Finalreport
Demo‘s
Implementation /integration
Draw uptest agenda
Send, receive and assessRFI
Review:
• Determineselectioncriteria
• Draw uprequest forinformation
• Make long list
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Assurance and controlAssurance
& controlOrganization& governance
Performanceassessments
Financial riskmanagement
Cash - andliquidity
management
Corporatefunding
Valuation &accounting
Treasurytechnology
I m p l e men ta t i o n
P l a n n i n
g
S trategy
Q u a
l i t y
a s s u r a n c e
Treasury
management
Effective controlSeveral recent events remind us of the
importance for a company and its
shareholders to have an effective control
environment for its treasury activities.
The international accounting standards
(IFRS and FAS) and the obligation for
executives to report the internal control
framework (e.g., the Financial SecurityAgreement Law and the Sarbanes-Oxley
Act) have created an additional level of
compliance.
For a technical and ‘high risk’ function, such
as treasury management, specialized
assistance is often necessary to alert the
cash manager, the finance department or
the executive management about the main
challenges and to comfort their opinions
about the quality of the organization and
the internal control framework related to
cash, financing and risk management
activities. It is often necessary to reinforce
the internal teams of the company by
mobilizing competences and methodology
specifically developed for treasury
management control.
Key questions
• Are the objectives for treasury and
financial risk management clearly
defined?
• Are all financial risks of the group
identified and correctly measured?
• Is treasury management meeting its
objectives and does it respect the limits
and guidelines assigned to it?• Is the organizational set up satisfying and
are its procedures correctly documented
and implemented?
• Are the resources of the treasury
management department sufficiently
numerous, competent and independent?
• Is the reporting on treasury transactions
and positions relevant, exhaustive and
independently done?
• Are the methods used and the financial,
legal and fiscal risks related to derivative
instruments well understood, measured
and controlled?
Our servicesWe offer to share control and management
systems and methodologies, taking into
account the requirements for:
• Legislative/regulatory compliance
• Efficiency
• Efficacy
• Accountability
To this end, we perform a full review by
checking and analyzing the current state,
followed by recommendations for
optimization with regard to the statutory
requirements based on our experience of
leading practice.
Our services include support to the existing
internal audit units in the planning,
preparation, performance and reporting,
taking into account current and future
trends. The results are recommendations
for the development of an effective(continuous) monitoring control
environment, support for the
implementation of programs (such as
fraud prevention or SOX) and evaluation of
the implemented controls and efficiency.
Your benefits
• Assurances and advice focused on
minimizing operational risks and
identifying potential operational
improvements
• Compliance with relevant legislation
• Active use of your control framework toincrease efficiency and effectiveness of
processes
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Country Contacts Address
France Olivier Drion
Tel: +33 1 46 93 79 14
Ernst & Young et Associés
Tour Ernst & Young
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92037 Paris La Défense Cedex
Germany Dr. Karsten Füser
Tel: +49 711988114497
Ernst & Young AG
Wirtschaftsprüfungsgesellschaft
Mittlerer Pfad 15
70499 Stuttgart
Italy Luca Calvetti
Tel: +39 02 806 69755
Ernst & Young Financial Business
Advisors SPA
Via Wittgens, 6
20123 Milano
The Netherlands Nico Warmer
Tel: +31 88 40 71400
Ernst & Young Nederland LLP
Antonio Vivaldistraat 150
1083 HP Amsterdam
United Kingdom Owen Purcell
Tel: +44 20 795 1 0059
Ernst & Young LLP
1 More London Place
London SE1 2AF
Switzerland Marco Stalder
Tel: +41 58 286 3341
Ernst & Young AG
Brandschenkestrasse 100
CH8002 Zurich
Sweden Karin Sancho
Tel: + 46 8 520 590 00
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7850, SE-103 99 Stockholm
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Tel : +47 24 00 26 63
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NO- OO51 Oslo
Hungary Tibor Szucs
Tel : +36 1 451 8795
Ernst & Young Advisory Ltd.
Váci út 20
1132 Budapest Hungary
Contacts details
EMEIA treasury services
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Ernst & Young
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About Ernst & Young
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