Business Opbouwer (m/v) TMS / Financiële Software – Dutch Speaking

18-09-2020 | Treasurer Search | treasuryXL

Onze Partner Treasurer Search is op zoek naar een Business Opbouwer (m/v) TMS / Financïele Software voor een opdrachtgever die al decennia actief is in de markt voor treasury management systemen. Samen met de sales manager ga je de Nederlandse markt veroveren:

  • Je buitenlandse collega’s werken je in, vertellen je waarom deze software de internationale treasury software markt tegenwoordig leidt, zowel qua technologie als qua groei. En op welke wijze zij succes hebben, wat je daar van kan overnemen en hoe ze je kunnen helpen;
  • Je bepaalt wat de klanten zijn die je het liefste voor je organisatie wint. En hoe je met hen een relatie op opbouwt.
  • Vervolgens snel aan de slag: heel veel bellen, maar ook events en social media!

Je vormt een tandem met de sales manager waarin hij buiten en jij binnen opereert. Vanzelfsprekend zijn door corona de kaarten opnieuw geschud en bedenk je met hem en je collega’s in London wat nu de beste aanpak is.

Ideale Kandidaat

Dit is geen baan voor mensen zonder ervaring. Je sprak al veel met financials, dat kunnen treasurers zijn maar ook CFOs en controllers. Op hun vakgebied hoef je geen expert te zijn, je moet wel vertrouwen en een relatie op kunnen bouwen. Je bent resultaatgericht en niet bang het eerste contact te leggen. Mogelijk is dit de baan die je al langer deed en doorzet, mogelijk wil en kan je verder in deze groeiende organisatie.

Onze Opdrachtgever

Onze opdrachtgever is al decennia actief in de markt voor treasury management systemen. De afgelopen jaren is er veel geïnvesteerd in technologie en is het bedrijf één van de weinigen die wereldwijd de markt bewerkt. De technologie is ijzersterk maar de organisatie is niet techniek-verliefd: klanten helpen en overtuigen, daar gaat het om. Commercie wordt op een heel doordachte manier gedaan, er is meer dan voldoende ruimte voor lokale initiatieven.

Salaris en vergoeding

De bedrijfscultuur is merkbaar prestatiegericht, de on-target-earning voor deze rol is €60K, waarvan een derde bonus. Deze is uncapped. De onderneming investeert in opleiding en een loopbaan ontwikkelen, in Nederland of internationaal, is mogelijk.

Voor kandidaten die passen en interesse hebben, is een uitgebreide beschrijving beschikbaar.

Contact person

Pieter de Kiewit

T: (0850) 866 798
M: (06) 1111 9783
E: pdk@treasurersearch.com





Location

Nederland – Home Office


APPLY HERE

What’s the Best Way to Exchange Your Currency for a Trip Abroad?

17-09-2020 | treasuryXL | XE |

Got an international trip coming up? Need to make a currency exchange? Let us talk you through your options.

When you’re preparing for an international vacation, there’s a lot you need to remember to bring. Between your passport, enough clothes, adapters, it’s easy to fill up a few bags with just the essentials. However…it’s also important that you don’t forget to bring some money to use on your trip. Odds are, if you’re traveling internationally, you’ll need to make payments in a different currency. What’s the best way to get the money? When should you make the currency exchange?

You have a few different options for exchanging your currency. We’re going to run through your options and let you know what the best option is and what you should do your best to avoid.

4. Using ATMs and card payments

Technically, you don’t need to make any currency exchanges. If it comes down to it, you can just go to an ATM or use a debit or credit card to make your payments. But while this option might sound like the most convenient one (at least as far as your time is concerned), it’s far from the best option.

When you visit ATMs or use your card to make payments in another country (and currency), you’re going to be subjected to numerous service fees and transaction fees each time you withdraw cash or swipe your card. If you’re there for a short time and only plan on making one or two payments that might not be so bad, but if you’re planning on making numerous purchases, these fees can and will add up—fast.

3. Exchanging in person at your destination

Another common option is waiting until you enter the country, and exchanging your currency there. People typically do this at the airport or at a local bank or currency exchange store.

While this method will let you avoid the high transaction fees, it unfortunately will not protect you from unfavorable rates of exchange. These providers are free to set their own rates, and it is very likely (especially if you’re exchanging at an airport kiosk) that the rates will give you much less for your money than if you transfer elsewhere.

And from a peace of mind perspective, wouldn’t it be nice to have your money taken care of before your arrival? That way, once you arrive, you’re free to start exploring or take a rest, without having to worry about getting money on top of wrangling your luggage and figuring out how to get to your lodgings.

2. Exchanging at the bank before your trip

As we mentioned in the previous section, it’s always nice to have your currency exchange taken care of before you reach your destination. It’s one less item to have on your to-do list when you arrive, and then if something happens upon arrival, you’ll already have the money that you need.

While banks are reliable, easily accessible, and can facilitate a currency exchange for you, they still aren’t the best option. While their rates will be better than those of airport kiosks, banks still come with a few drawbacks—namely, limited working hours, unfavorable exchange rates, and transaction fees.

So where does that leave us? Well…

1. Using money transfer to get currency before your trip

We promise we’re not biased—this really is the best option. Using an online money transfer service to exchange your currency before your trip will allow you to:

  • Avoid transaction and payment fees

  • Trust you’ll get a fair exchange rate

  • Take care of your currency exchange quickly and from your own home

  • Let you relax knowing that your currency exchange has already been handled.

It’s quick and easy to make an online money transfer. You don’t need to find a physical storefront and worry about business hours—you can initiate one on the go, 24/7, 365 days a year.

 

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Only 5 days left until the International Treasury Management Virtual Week 2020

| 16-09-2020 | Eurofinance | treasuryXL |

Don’t miss the Treasury Event of the Year! If you haven’t signed up already, here is a reminder to join this great virtual event with incredible speakers and live sessions.

Virtual Event

Now more than ever, we need to learn and engage with other treasury professionals around the world, so that we can navigate and overcome the unprecedented challenges we are facing.

As the current situation unfolds, the role of the corporate treasurer is evolving and becoming more strategic than ever before. The complexities and function of treasury within the business is changing even more rapidly. The question is: What does the future of treasury look like and how will this affect my team? And where can I turn for world-class advice on building resiliency, supporting the business and addressing future challenges?

Look no further than EuroFinance’s International Treasury Management Virtual Week taking place 21-25 September. It will see world-leading treasurers and economists come together to address these issues, deliver big picture global insights and share the essential granular knowledge you and your team need for the path ahead. In the spotlight will be the latest on cash flow forecasting, supply chain finance, tech, liquidity and FX and payments plus much more.

Speakers and Live Sessions

The line-up of speakers is impressive with the likes of Shell, Alibaba Group, HP Inc., eBay, Finnair, Microsoft, Intel Corporation, Schlumberger, Booking Holdings Inc. and Rio Tinto holding centre stage in one of the 75+ live sessions. But don’t worry if you miss a session, they will be available on-demand for you to watch at a time that suits you.

The custom-built virtual conference platform will bring the experience of a live event to life in a virtual world. It offers plenty of opportunities to network and learn from your global peers, plus a smart calendar to build your schedule.

Free Registration

The great news is, the 2020 event comes without a price tag! It is free for corporate treasurers. So, you can get all the world-class expert knowledge and insights you expect from the leading treasury event without the costs of registration, flights, accommodation or even expenses.

What are you waiting for? Set your treasury team up to thrive not just to survive.

Register for free today!

 

Partner Interview Series | XE the world’s trusted currency authority

15-09-2020 | treasuryXL | XE |

XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

We will take a deeper dive into the market, XE businesses and the future of FX.

AN INTRODUCTION TO

Wybe Schutte is head of Business Development Europe at XE.com. Wybe’s career has always centered around international business development and managing relationships. Within XE.com both play an important part as globally we XE is the trusted partner of many business in helping them manage & mitigate the risk that is associated with dealing with multiple currencies, be this through simple rate regulation or looking at high level currency risk management & hedging solutions.

We asked him 10 questions. Let’s go!

 

INTERVIEW

1.Can you tell something about XE and its mission?

At Xe, we live currencies. Most people know Xe from the currency converter, however we also provide international money transfer services for business for over 25 years.  Xe’s Business Solutions supports company’s that have an exposure to foreign currency, supporting them to safeguard profit margins and improve cashflow through quantifying the FX risk they face and implementing strategies to mitigate it. So that our clients can focus on their core business and do not have to worry about their FX.

2.What kind of FX risk types exists and how does XE deal with it?

We look within each business to see where the currency risks are, and whether these can be offset. For example, any sales made in Euros could be offset against Euro costs. If there is still an exposure this is where products such as Forward Contracts can be considered in order to provide protection against the risk. Currency risk can be divided into three types: Transactional Risk, when a business deals in a country that differs to their base currency; Transnational Risk, when a business has an asset or liability overseas on their balance sheet, and Economic Risk where a movement in the exchange rate can give a business a competitive advantage when competing for a particular market.

3.How can you measure the different types of FX risk?

FX Risk can either have a negative or positive impact on a business’ bottom line. If you look back over the last 10 years you can understand what the potential impact could be in the most extreme, least extreme and average scenarios over your given timeline.

This can be done by looking at the high & low points of the market and a business’ FX exposure. This step helps companies to understand what the impact of the net exposure can have on the bottom line.

4.What are the most common critical FX problems that businesses have?

Businesses that have a transactional exposure to the currency markets can differentiate between committed and forecasted exposures. A committed exposure is when the price for a good or service in a foreign currency is known and contracted. Therefore, any movement in exchange rate has a direct impact on their profit or cost unless hedged. A forecasted exposure is when a business looks to the period beyond the committed period to see what their requirements may be. Confidence levels into forecasted periods can vary largely and it is normally the case that the further out a business forecasts, the lower the confidence levels.

5. How can businesses protect their bottom line against the currency markets?

There are a number of key stages that a business can look to follow in order to mitigate FX volatility. Firstly, Identify the type of risk, quantify the risk elements, and then look to build a strategy and agree the implementation process. These stages will allow you to decide the products that are most suitable, so you can then move to market timing and execution. Lastly, you should look to review, revise and adjust your approach on a regular basis. It is important to remember that it is not about market speculation but about mitigating your risk.

6.What is, in your perception, the biggest benefit of a working Foreign Exchange strategy?

Given the ever-uncertain world in which we currently live in, finance departments and treasury centres could be looking to build a strategy to deal with currency fluctuations, which over time could have a considerable impact on your company’s bottom line. A structured approach to foreign exchange risk can enable your business to make strategic planning decisions, rather than attempting to respond to day-to-day developments in the market.

7. Do you experience differences in FX before COVID19 and the time we live in now? What are the differences?

There has been significant movements in the currency markets during the Covid19 period and there are still many factors that influence the daily rates. During these uncertain times our clients are looking for certainty and stability. And although price is always important, other key factors like security and credibility became more important. Naturally each of our clients has been impacted very differently and we have worked with them to provide the solutions and flexibility they needed. We have welcomed many new clients from new geographies? as they were growing, and we supported existing clients that were growing or adapting their business models to suit the changing market.

8.The market is always changing, how does XE stay top of mind of the latest developments in the currency world?

We work closely with our clients to continuously understand their needs and adjust accordingly. Our expert Dealers keep a close eye out on the market. Understanding the movements, resistance levels, and key economic & political updates that can influence the market so that our clients do not have to worry about that. Xe also works closely with our sister companies and parent company Euronet Worldwide.

9.How does the future of FX look like in your perspective?

The near future could be set to weather extraordinary levels of balance sheet expansion and recession, potentially leading to a longer stimulative/expansionary monetary policy which could in turn depress currency rates of the countries that bear them. Near to medium term impacts of this could include a lack of major economic expansion as capital returns are often negative when factoring inflation. This may mean that we see a re-composition of FX strength toward commodity-based currencies (CAD/AUD/NZD) and alternative safe havens (CHF). However, we could see this shift in the longer term as public debt, in particular, becomes more tenable and attractive at such low interest rates and could invite broader investment for countries and to a degree private industry.

We have witnessed ample FX market volatility from an increased reliance on a more narrow data core. Inflation and interest rates and also public debt and balance sheet expansion narratives are having the most impact on rate movements. With this in mind; where much of the corrective forces required are formed around policies related to these key issues, it appears that volatility could behere to stay for at least the coming 6-12 months and beyond.

10.How does the future of FX look like in your perspective?

Supporting a scale-up with their complex FX requirements and enable them to grow their business in a short period of time by eliminating the FX risk and provide significant costs savings along the way.

 

About XE

At XE, they live currencies. XE provides a comprehensive range of currency services and products, including their Currency Converter, Market Analysis, Currency Data API and quick, easy, secure Money Transfers for individuals and businesses. They leverage technology to deliver these services through their website, mobile apps and over the phone.

Last year, XE helped nearly 300 million people access information about the currencies that matter to them and over 350,000 people used XE to send money overseas. Thousands of businesses relied on XE for information about the currency markets, advice on managing their foreign exchange risk or trusted XE with their business-critical international payments.

International Payments & FX Risk management for business

XE Business Solutions can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. We provide a comprehensive range of currency services and products to help you access competitive rates with greater control.

At XE, they share the belief that behind every currency exchange, query or transaction is a person or business trying to accomplish something important, so XE works together to develop new and better currency services that put their customers first.

XE is proud to be part of Euronet Worldwide (Nasdaq: EEFT), a global leader in processing secure electronic financial transactions. XE is part of the Money Transfer Division of Euronet and is the unification of HiFX and XE.com.

Visit XE.com

Read XE blogs

Raising capital with the right information

14-09-2020 | by Rowan Hermes | Ilfa | SmartFunding

Raising funds is difficult, especially in these uncertain times. In this blog we explain why the right information and good help could aid entrepreneurs.

Blog is in Dutch language:

Economische onzekerheid is voor nagenoeg elk bedrijf een slechte zaak. Om voorbereid te zijn op de uitdagingen van de komende tijd is toegang tot voldoende werkkapitaal heel belangrijk. Kapitaal ophalen is echter niet zo makkelijk als het op het eerste gezicht lijkt. Er zijn heel veel soorten financiering, van de bekende bancaire lening tot de minder gebruikelijke factoring. Daarnaast heb je soms aan één financieringsvorm niet voldoende en moet je een combinatie maken. Welke financieringsvorm of combinatie het beste bij jouw onderneming past is afhankelijk van veel factoren. Er is dus niet snel een eenduidig antwoord te vinden op de vraag waar jij werkkapitaal vandaan kunt halen.

De juiste informatie

Kapitaal ophalen is een proces met veel stappen.  Om tijdens dit proces goede keuzes te kunnen maken heb je goede informatie nodig. Informatie kun je onder andere ophalen op:

1.Websites van aanbieders

Financiers verschaffen op hun websites informatie over hun producten. Bedenk wel dat dit commerciële informatie is en vooral geschikt is om verschillende financiers onderling te vergelijken.

2. Evenementen

Ook op evenement delen financiers hun informatie. Ook dit heeft vaak een commerciële inslag, maar op een evenement is direct contact met financiers mogelijk.

3. Blogpagina’s

Via blogs kun je veel leren over de verschillende soorten financieringen.

4. Websites van de KvK en RVO

Deze websites zijn gericht op ondernemers en zijn een goede bron voor educatieve informatie.

De juiste ondersteuning

Zelfs als je alle juiste informatie weet te vinden, blijft het maken van de beste keuze een uitdaging. Het inschakelen van een adviseur kan een uitkomst zijn. SmartFunding is in staat om ondernemers tijdens het hele proces van vraag naar financiering te ondersteunen. Waar nodig staan onze adviseurs je bij: van het opzetten van een businessplan tot het zoeken naar financiers en het bepalen van de beste financier voor het project. Ook na de financiering bieden wij ondersteuning aan de ondernemer waar nodig. Kortom, gedurende het gehele proces staan wij ondernemers bij.

Voor advies of vragen kun je altijd contact opnemen met SmartFunding via +31 85 303 56 65 of info@smartfunding.nl. Uiteraard kun je ook altijd direct contact opnemen met een van de SmartFunding-adviseurs.

 

 

Source

Cash Management Generalist as your next career move?

11-09-2020 | Treasurer Search | treasuryXL

Our Partner Treasurer Search is looking for a Cash Management Generalist for a modern tech company with a global presence. The main tasks of the generalist are in cash management: payments, bank account opening & maintenance, forecasting, liquidity management, et cetera. Occasionally also FX risk or support in funding activities by the CFO will be required. Starting with a focus on a structural availability in cash, the generalist will be allowed to expand responsibilities and pick up other corporate treasury tasks.

Ideal Cash Management Generalist

Essential in the personality of the generalist is that she is not afraid to take responsibility. She has a relevant education and at least two years experience in operational cash management. She is able to oversee what is important and what are the priorities. The ideal generalist is not afraid to do the operational work and knows that, given the size of the organisation, overly sophisticated treasury tooling is not appropriate.

Our Client

Our client is a modern tech company with a global presence and a history of several decades. About 1000 employees work internationally and serve thousands of clients. The high number of transactions has an impact on treasury operations. There is a small CFO team in The Netherlands of which the generalist is a member.

Remuneration and Process

The base salary is expected to be €50K. The Treasurer Test might be part of the recruitment process.

Contact person

Pieter de Kiewit

T: (0850) 866 798
M: (06) 1111 9783
E: pdk@treasurersearch.com





Location

Utrecht Region


APPLY HERE

Signs Your Foreign Exchange Provider Isn’t Right for You

10-09-2020 | treasuryXL | XE |

Every business is different, and so is every foreign exchange provider. How do you know whether your provider is right for your business’s circumstances? If you’ve been keeping up with our blog series on managing your company’s foreign exchange risk, you’ve likely seen us give one consistent piece of advice throughout the process: have a foreign exchange provider. Working with the right foreign exchange provider can help you reduce your business’s risk levels and improve the efficiency and efficacy of your international payments and other foreign currency dealings.

However, not every foreign exchange provider is the right foreign exchange provider. A provider can be knowledgeable, experienced and provide great customer service, but none of that matters if they don’t have the knowledge, experience, and service offerings to suit your business, its operations and its risks.

Not sure how to spot the right (or the wrong) foreign exchange provider? There are a few key qualities that you should look out for as you shop around.

What’s one of the biggest issues with foreign exchange providers?

One common problem that we see keeping businesses from effectively managing currency risk and securing the best value from transactions is a lack of flexibility. If your foreign exchange provider doesn’t offer enough flexibility in their terms, you’ll be limited in terms of what you can do.

Take hedging, for example. For some businesses, hedging would be a wise strategic decision, but not all providers offer a variety of options. You may be asked to make payments in advance or provide margin for forward positions, and not all companies are able or willing to do so. Even if your business is willing to meet a provider’s terms, they might not be best suited to your circumstances.

On the other hand, other providers could offer a wider range or more flexible credit terms that would account for your business’s needs.

What should you look out for?

We recognize that telling you to look for “flexibility” is a little too vague. When speaking with foreign exchange providers, take the time to discuss their solutions and strategies in detail and understand how rigid their processes are. Understand your business’s processes as well—this will help you to in turn know what to look for in a foreign exchange provider.

Let’s look at payment service, for example. When working with international currencies, it’s likely that you’ll need to make quick payments to different recipients in different markets, while still having plenty of time to make your transactions and ensure that everything is correct. Some foreign exchange providers may only offer one form of payment service. That could work well for them, but it could also be inconvenient or detrimental for your business. Ask your provider whether they offer different payment options, or if there’s any way to configure their existing model to fit your business.

Ultimately, you want to find the provider that can and will adjust their strategies and solutions to fit your business. Whether you’re looking for assistance with your day-to-day transactions or your long-term risk management strategies, it’s important that you feel that your provider understands your business and is offering the solutions that will best address your goals, rather than a standard one-size-fits-all solution.

 

Get in touch with XE.com

About XE.com

XE can help safeguard your profit margins and improve cashflow through quantifying the FX risk you face and implementing unique strategies to mitigate it. XE Business Solutions provides a comprehensive range of currency services and products to help businesses access competitive rates with greater control.

Deciding when to make an international payment and at what rate can be critical. XE Business Solutions work with businesses to protect bottom-line from exchange rate fluctuations, while the currency experts and risk management specialists act as eyes and ears in the market to protect your profits from the world’s volatile currency markets.

Your company money is safe with XE, their NASDAQ listed parent company, Euronet Worldwide Inc., has a multi billion-dollar market capitalization, and an investment grade credit rating. With offices in the UK, Canada, Europe, APAC and North America they have a truly global coverage.

Are you curious to know more about XE?
Maurits Houthoff, senior business development manager at XE.com, is always in for a cup of coffee, mail or call to provide you detailed information.

 

 

Visit XE.com

Visit XE partner page

 

 

 

Alternative Risk Finance Part 2 – Building the Business Case

| 09-09-2020 | Mark Roelands | treasuryXL

In this 4-Part series on Alternative Risk Financing, our Expert Mark Roelands highlights upon the importance of Alternative Risk Financing.
Part I reflected the alternatives of risk financing in the current hard insurance market. Now, Part 2 reflects upon the business case and how to build it, in order to enable decision making and finally decide whether to pursue the alternative risk financing route.
Building internal support is critical in getting to the go / no – go decision. Defining the Business Case will go hand in hand with generating internal buy-in by involving internal stakeholders like tax and legal during the analysis process. This blog will be about the business case set up, and how the relevant stakeholders should be involved during the process. The business case setup then is managed together with a companies’ internal dynamic. Let’s find out how to build the business case with the relevant components……..

Building the Business Case

As introduced in Part I, a structured framework is required in order to get to structured decision making. The framework used is the Risk Financing Framework by Roelands GRC Consulting. The main question on whether to start an in-house insurer is divided in 4 sub questions with 4 modules

1. Foundation> Achieve the risk finance objectives

What is your strategy with respect to retaining risks? What risks are you willing to retain?
As a treasury department for instance, the currency exposures are managed and hedged. To a certain degree, hedging is either too costly or priced into forwards (with limited risk transfer implications). This also applies to insurable risk. A certain level of claims can be expected which will either be within the deductible level or priced into premiums. Critical is to understand what volatility is acceptable to the organisation. Stakeholder expectations and requirements can be key determinants. What headroom is available on financing arrangements and on what percentage deviations will supervisors and auditors start to raise questions? What quarterly earnings deviation would be possible, and has Covid19 changed that position? Bottom line, in most alternative risk financing structures the corporate retention is increased, and a crucial question therefore is when a negative scenario unfolds are you able to defend the impact of the insurable risk retention?

What is the ultimate objective to be achieved? 

2. People & Organisation > Matching the organisation, policies and people

How would an in-house insurer fit within your organisation? This is about aligning internally on the conditions that need to be met for an in-house insurer. There are several countries or domiciles, and several forms of captive insurance which are possible. Within the organisation risk management resources and governance structures need to be aligned. Hence,

What form of captive would match your organisation best? 

The trend in domiciliation, which is strengthened by BEPS, is offshoring or onshoring and to choose a domicile where there is substance. A treasury centre domicile would be a good alternative, as is the HQ domicile or certain domiciles which have a big captive insurance support industry. Within Europe, this would be Ireland, Luxemburg, Guernsey or Malta. Going outside of the HQ domicile may have some obvious tax consequences that will need to be addressed with the colleagues from tax. A Cell Company could be an interesting alternative, but it is important that this is understood correctly within the organisation (more on this in Part 3 of this series). The Legal department will need to be involved, and as this will have domiciliation implications, the Tax department as well. As a larger part of risk is retained within the company, it is critical that risk management processes are directed to managing the risk, and certain functions may need to be involved as well. For instance when employee benefits is a risk to be underwritten, then HR will definitely be involved as coverage provided is key.

Depending on the type of captive that is established and in what domicile certain governance structures may need to be established (for instance in the Netherlands, the Corporate Governance Codes applied as a captive is an NV, implying 2 independent members of the Supervisory Board), service providers need to be found and external resources may need to be purchased. These will often become partners which the company will be working with for multiple years, so how will they be selected? Brokers and insurers offer their captive or alternative risk finance facilities, which may be very good, but there is a certain lock-in aspect to it.
Therefore, decisions need to be considered carefully.

3. Processes > Adaptive, effective and efficient operations

Relevant processes need to be established or adjusted to fit the new situation. From an operational point of view, adjustments will need to be made to ensure effective and efficient operations.

  • Premium setting: Premiums will be based on indications received during the business case setup and claims analysis. Furthermore, they need to be allocated to operating companies on an arms’ length basis. This will require some analytical input. Usually, a fronting insurance company is involved in taking care of premium collection and direct policy issuance. Otherwise, that will need to be done by the captive as well.
  • Claims handling: Which parties are involved in loss adjustment? Who is able to authorise claim payments? Will the fronting insurance company take care of it? As treasury or insurance function, there will already be some involvement. Retaining more risk provides a clear incentive for advancing control measures.
  • Cash Management: Which bank is used by the captive insurer, and can it be connected to the cash pool? Different cash pool structures may have different capital implication.
    For example, a Protected Cell Company may need to use a bank account outside of the home jurisdiction.
  • Investment: Can the captive return liquid assets to the parent company?, or do local regulations require some investments to be held in certain (liquid) categories like government bonds?
  • Capitalisation: the minimum level depending on the risk underwritten within the EU is EUR 1,2M, but usually the capital required is a multiple of this figure. Key benefit of a Cell Company is the capital efficiency (more on this in Part 3)
  • Reporting: Usually done quarterly to the regulator and depending on internal requirements on a monthly basis

Sub question for the third part: How to align processes operationally, and to highlight relevant action points which will need to be addressed once a go-decision is made.

4. Data and Technology > Generating an optimal Total Cost of Risk

Deciding on whether or not to start an in-house insurer requires a well worked out quantified business case, based upon different scenarios in order to judge the risk appropriately. In order to generate a fair comparison, a total cost overview will need to be made. This compares the total costs, which will be paid externally i.e intercompany flows like premium to the inhouse insurer will thereby be excluded. Sub question of part four is whether the business case makes sense from a financial perspective. Which costs are in scope will be determined by the analysis resulting from the previous 3 steps.  The simplified example business case below describes an imaginative Netherlands based captive insurance company. Although figures are purely indicative, the size of the amounts is representative of a captive business case.

Example Financial Business Case

x 1.000 Continuation – Expected Captive – Expected Captive – Negative
 
Total External Insurance Premium 10.000 7.500 7.500
Total Losses Retained
Below deductibles 1.000 1.000 1.000
Above (sub) limits 0 0 0
Excluded cover 0 0 0
Within in-house insurer 0 750 5.000
Operational costs
Insurance Premium Tax 2.100 2.100 2.100
In-house insurer costs 0 350 350
Insurance function costs 200 250 250
Risk Management costs 15 15 15
Total Costs 13.315 11.965 16.215
Change 1.350 -2.900
Capital Required 3.800 3.800

Premium observations

  • Sufficient premium volume is required. In the example, EUR 2,5 M premium reduction is assumed which will then be retained in-house and thereby is not part of the total (external) cost.
  • IPT will also have to be paid on the captive premium (@21% in the Netherlands)

Losses retained observations

  • Flip side of a significant premium reduction is a significant retention in the captive. In the below example at least EUR 5M is assumed, which will be hit in the negative scenario.
  • Usually this is complemented with an annual aggregate limit in order to limit losses in the entity
  • Part of the business case setup entails a careful claims analysis to make appropriate assumptions

Cost observations

  • Operational costs : accounting, actuarial, audit, independent supervisors as well as a cost allocation for the time used from the insurance manager/function
  • This will need to be outlined in different scenarios for decision making

Overall observation

Bottom line, in the expected scenario here a positive result is projected, but when an incident occurs a negative result (compared to traditional insurance) is projected. This is a very common trade-off requiring a deliberate choice.

Summary

Deciding to start captive insurance is a structural decision (and forms a multiyear commitment) requiring a structured approach, it may help to involve external expertise from a broker, insurer, actuaries, or independent consultants as each business case is specific. The overview in this blog however does describe the main steps and considerations to be taken. When this business case is carefully set up, assumptions clearly described and financial projections are well worked out, this then already provides a solid basis for applying for an insurance license. The initial effort will pay-off at the end, so do not rush the decision making process

This is Part 2 of the Alternative Risk Finance Series, Part 3 will be “Cell Companies 101” and Part 4 will be “Risk Trading and Future Alternative Risk Finance”. Together this generates an overview of the current and future landscape of alternative risk financing.

 

 

Mark Roelands

Risk and Compliance Specialist

 

 

The Treasurer’s Toolkit: Unpacking the DNA of a successful treasurer in 2025

8-9-2020 | treasuryXL | Refinitiv |

How did treasurers become the guardians of business risk?

In the aftermath of the financial crisis, corporate treasury teams were thrust into the spotlight when businesses prioritised cashflow as banks’ appetites to lend waned. Since 2008, the role of the corporate treasurer has evolved from that of a diligent back-office function, to increasingly become more of a strategic advisor to the board. Today’s corporate treasurers have a much broader remit and the subsequent onslaught of regulations such as Basel III, Dodd Frank, MiFID II and the International Accounting Standards have ensured that the treasurer now plays a critical role in ensuring the survival, and success, of businesses.

To sustain this advisory relationship with senior stakeholders and further develop as a strategic lead in the global competitive business landscape, corporate treasurers must understand the vital skills and relevant experiences that will not only help propel their careers but differentiate them from others in the market.

78 per cent of respondents agree that treasurers across the world are now expected to do more with less

In this ground-breaking research report The Treasurer’s Toolkit, Refinitiv has identified key trends in how corporate demands have shaped the skillsets, desired experience and typical profiles of the modern corporate treasurer. Our research incorporated the views of 250 CFOs, heads of finance and recruitment professionals, across five continents in businesses varying in size, from fewer than 100 employees to more than 5,000. In this report we take a deeper dive into the research, to unpack the DNA of the successful treasurer, now and in the future.

OpusCapita shares exciting news – A Nordic Powerhouse

| 07-09-2020 | treasuryXL | OpusCapita |

In July OpusCapita and Analyste announced that they entered a transaction. Now the companies are about to launch the new company they form together.

Make sure to sign up here to be the first to know more.

 

About OpusCapita

OpusCapita enables organizations to buy and pay quickly and securely, with a real-time view of their business. OpusCapita customers use their source-to-pay and cash management solutions to connect, transact and grow. OpusCapita processes over 100 million electronic transactions annually on its Business Network.

 

 

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