Treasury Review

An efficient treasury operation is essential in any type of company, irrespective of size or business sector. A business needs to be:

• capable of managing key areas such as cash, foreign exchange, banking, interest rate exposure, debt and
• able to do this in a low risk and cost effective manner.

The benefits of an independent review are:

• an objective analysis of how the treasury risks arise and how these are identified and managed,
• recommendations, where appropriate, for changes or improvements.

Such a review can be of particular relevance if certain changes have occurred, or are about to occur, which affect the way the treasury function operates, e.g. in relation to a company acquisition, or a change of business mix.

The review process usually involves four stages:

• background: review of the key features of the company’s business & financial risks,
• management: understanding scope & approach to treasury management,
• desk research: review of treasury reports & policies,
• PMC report: describing current activity and recommendations.

Example –

Following the change of ownership and the appointment of a new Finance Director, a client had decided that it needed to get a much closer handle on how effectively it was identifying and managing its treasury operations. Through meetings with both finance and operations people in the key locations, PMC highlighted the significance and dimensions of the treasury risks, recommended new reporting procedures and assisted in the recruitment of a new treasury manager.

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