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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 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.

DOCUMENTATION

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 ...
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Publisher Resources

ISBN: 9781118127346Purchase book