Chapter Twenty Three

Operational Aspects

Documentation and Execution

IN THIS CHAPTER, WE COVER some of the operational aspects of risk management: documentation and execution. Other aspects will be covered under the general control and operations in Chapter 29 of the Toolkit in Part Five.


Risk management is a documentation-intensive exercise, but it can be implemented easily—if appropriate efforts are put into establishing or writing out the one-time documentation, the rest of the processes can work strongly and seamlessly. Table 23.1 provides documentation generally in place for purposes of robust risk management.

TABLE 23.1 Some Documents for Risk Management Execution

Documentation Internal External (as Required)
One time Treasury policyBoard approvalsAuthorisationsLimitsIncorporation documentISDA approvals Abbreviated policy (for shareholders, auditors, banks, etc.)Board resolutionsSignature cardsIncorporation documentLegal opinion (if required)Any regulatory norms or approvalsExecuted ISDA master and schedulesCredit support (where required)Credit facilities from banksFinancial reports (for credit facilities and ISDA)
Transaction wise Deal ticketModel validationsTax clearance (if required)Hedge effectivenessAccounting opinion (if required) Indicative term sheet with payoff profiles and risks documented (bank)Desk confirmation (dealer)Transaction confirmation under ISDA (operations)Documentation related to funds transfer and settlementsValuations and statements ...

Get The Handbook of Global Corporate Treasury now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.