The Handbook of Global Corporate Treasury

Chapter Four

Importance of Operations and Control Efficiency

PROCESSES FORM THE CORE of the Treasury function, with systems and technology being enablers to implement and achieve efficient processing. Unfortunately, processes are also some of the most ignored aspects of many a Treasury, relegated to the shadows away from the glamour and spotlight of investor relations, mergers and acquisitions, capital planning, exotic concentration solutions, and risk management.

This chapter highlights the importance of processes—their operations and control—and some of the tools required to put processes in place. The Toolkit in Part Five discusses some of these tools in detail.

TOOLS

There are many tools available in the Treasurer’s armoury. The following tools (Figure 4.1) are especially critical from an operations and control standpoint.

FIGURE 4.1 Tools for Strong Operations and Control

Policy

A Treasury policy, a sample of which is provided in Part Five, is a starting point in the Treasury operations and control journey. Key elements, activities, risks, and mitigants are identified; roles and responsibilities are allocated; and limits and functioning parameters are defined. Processes and procedures have to work in tandem with the policy.

Process Mapping

Process maps lay a strong foundation for watertight process notes. There are different styles and standards of process mapping. I favour ...