Make Risk Count.

Treasury Healthcheck

‘Prevention is better than cure’ applies as much to treasury activity as it does to personal health. Yet, as with doctors' appointments, it’s tempting to use resource and budget constraints as excuses for delaying check-ups.

Regular healthchecks provide peace of mind.

To ensure good health of your treasury function and to be operating at best practice, regular healthchecks can help to diagnose issues before they surface.

It is vital to cultivate a discipline that continuously challenges, reviews and improves treasury objectives and processes.

Effective treasury healthchecks involve two core disciplines:

Reviewing:
  • Internal controls.
  • Debt and bank account structures.
  • Information flows across the organisation.
  • Understanding of, and adherence to, treasury policy and strategy.
  • Benchmarking against peers.
Improving:
  • Operational processes.
  • Cash forecasting accuracy.
  • Foreign exchange and interest rate exposure identification.
  • Cashflow throughout the organisation.
  • Reporting.

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Conducting treasury healthchecks creates financial benefits:
  • Reduced financial risk.
  • Clearer focus on costs.
  • Lower likelihood of losses and financial malpractice.