Skip to Main Content
The Handbook of Global Corporate Treasury
book

The Handbook of Global Corporate Treasury

by Rajiv Rajendra
April 2013
Beginner content levelBeginner
672 pages
13h 22m
English
Wiley
Content preview from The Handbook of Global Corporate Treasury

Chapter Two

Treasury Design

THE CONCEPT OF TREASURY DESIGN is simple: to organise the Treasury function, its people and processes, working toward efficiency, elegance, and utility.

The starting point for Treasury Design is a study of the key performance indicators (KPIs), since the existence of Treasury and its structure has the eventual goal of achieving these performance goals. These KPIs were mentioned briefly in Chapter 1 and are further elucidated in the Toolkit in Part Five.

Since it is possible to have more than one route and model to achieve similar goals, other considerations come into play in designing an appropriately organised Treasury for the organisation. These considerations are:

  • Lower cost
  • Lower turnaround times for decision making and resolution
  • Higher degrees of control and wider net for control
  • Lower cost of capital and increased availability and diversity of capital
  • Legal environment of various locations
  • Accounting practices followed by the firm and accounting environment of the geographies in which the business is being done
  • Tax aspects
  • Automation required
  • Existing and future volumes
  • Growth and increase in business and geographies
  • Expectation of turbulence of competitor and industry landscapes

The three Treasury themes or functions—the management of transactions, balance sheet and liquidity, and risk—are the foundation for these KPIs and considerations.

Figure 2.1 shows the development of the Treasury Design process.

FIGURE 2.1 Treasury Design

KEY ELEMENTS ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Handbook of the Economics of Finance

Handbook of the Economics of Finance

George M. Constantinides, Milton Harris, Rene M. Stulz
Corporate Foreign Exchange Risk Management

Corporate Foreign Exchange Risk Management

Lars Oxelheim, Alf Alviniussen, Hakan Jankensgard
International Money and Finance, 9th Edition

International Money and Finance, 9th Edition

Michael Melvin, Stefan C. Norrbin

Publisher Resources

ISBN: 9781118127346Purchase book