3-daagse opleiding Cash- en werkkapitaalbeheer | Start midden maart 2021

| 16-2-2021 | François de Witte | treasuryXL |

Een transparant werkkapitaalbeheer met een goed inzicht in cash-, treasury- en creditmanagement

Omschrijving

Productieprocessen, (internationale) logistieke processen en verkoopprocessen brengen grote geldstromen in beweging. Een bedrijf financieel gezond houden kan niet zonder een gedegen werkkapitaalbeheer. In deze basisopleiding bekijken we alle inkomende en uitgaande geldstromen (debiteuren, crediteuren, voorraden en cash). U leert hoe u deze geldstromen kunt beheren en optimaliseren. Een aanrader voor iedereen wie interesse heeft en de noodzaak inziet van een transparant treasury- en creditmanagement.

Voor wie is deze opleiding bestemd?

Deze module richt zich tot bedrijfsleiders, alsook alle financieel verantwoordelijken, leden van het treasury team, controllers, financieel adviseurs, accountants, accountmanagers en productmanagers bij financiële instellingen.

Voorkennis

Financieel basisinzicht is vereist.

Bijkomende info

Het programma komt in aanmerking voor 9 uren permanente vorming bij ITAA.

Methodologie

Het programma is doorspekt met cases die samen met de deelnemers behandeld worden. Naast voorbeelden uit de praktijk die de theoretische onderbouw concretiseren, is er steeds aandacht voor de opmerkingen en vragen van de deelnemers. Om deze reden is het aantal deelnemers beperkt.

Programma

1) Basis Cash & Treasury

  • Factoren die de cash behoefte beïnvloeden (DSO, DPO, DIO, Bedrijfskapitaal)
  • Cash forecasting-technieken & logica (korte + lange termijn)
  • Bank connectiviteit
  • Betalingen
  • Hoe cash vrijmaken?
  • Cash management tools
  • Financieringstechnieken
  • Risk management (wisselkoersrisico)

2) Basis Creditmanagement

  • Effecten van credit management op het werkkapitaal
  • Bouwstenen van prospect naar klant
  • Basisprocessen, best practices en opvolging ter optimalisatie van uw werkkapitaal

Lesdata

Datum Startuur Einduur
woensdag 17/03/2021 09:00 12:00
woensdag 24/03/2021 09:00 12:00
woensdag 31/03/2021 09:00 12:00
Kies eventueel een andere locatie of tijdstip

Data onder voorbehoud van eventuele wijzigingen.

Meer informatie en inschrijven: Klik Hier

 

Francois de Witte

 

François de Witte

 

 

 

 

 

 

Treasury Management during the COVID 19-crisis: Opportunities & Risks – Live Webinar

| 1-2-2021 | François de Witte | treasuryXL |

As a result of the COVID19, many companies are faced with cash & liquidity problems. How do you deal with this? What tools do you have available to manage this? How do you approach the stakeholders, including the banks for additional loans. Find out in upcoming event with the help of our Expert François de Witte. Continues in Dutch…

Deze opleiding heeft als doelstelling om inzicht te geven in:

  • de tools voor het cash & liquidity management en hoe ze te gebruiken;
  • hoe je bijkomende financiële ademruimte creëert: beheer van werkkapitaal – uitstel van kosten;
  • hoe je de banken benadert voor uitstel van aflossingen en/of bijkomende kredieten;
  • de inschatting van de risico’s en opportuniteiten van deze nieuwe situatie;
  • het opstellen van een concreet actieplan.

Doelgroep

De opleiding kan gevolgd worden door verschillende doelgroepen:

  • KMO relatiegelastigden van banken;
  • Financiëel verantwoordelijken van KMO’s en non profit organisaties;
  • Corporate Treasurers.

Vereiste voorkennis

Advanced level: biedt praktijkgerichte toepassingen op de reeds verworven theoretische kennis van de “basic level” opleidingen (uitdieping).

Programma

Inleiding: Belang van cash & liquidity management

Deel 1: Tools voor het beheer van cash & liquidity management van je onderneming:

  • Wat is mijn cash positie vandaag?
  • Cash forecast voor de komende dagen, of zelfs weken?
  • Beheer van werkkapitaal
  • Cash Burn Rate – Cash runway
  • Dagelijkse stuurgroep Cash Positie
  • Beheer van financiële risico’s

Deel 2: Tips voor het verbeteren van je cash positie:  

  • Beheer van de klantenpost
  • Beheer van de voorraden
  • Beheer van je leveranciers
  • Uitstel van bepaalde uitgaven

Deel 3: Onderhandeling van uitstel vervaldagen of nieuwe kredieten bij de banken:

  • Kredietbeoordeling door banken: aandachtspunten
  • Wat is momenteel voorzien door de overheid, Febelfin en de bank community?
  • Hoe benadert je best de banken: tips en tricks voor je kredietdossier 

Deel 4: Risico’s en opportuniteiten – Actieplan:

  • Risico’s en opportuniteiten
  • Tips & Tricks
  • Actieplan 

Q & A – Coaching

Praktische Informatie

  • Datum: 01-03-2021
  • Tijd: 10u – 12u30
  • Duurtijd: 2u30 (met pauze tussenin)
  • Plaats: inloggen op online platform
  • Extra info: Via het online leerplatform kan u doorklikken naar de webinar. U vindt alle informatie onder de categorie ‘mijn planning’.

Verder hoeft u niets te downloaden. Om de webinar te kunnen volgen, heeft u nodig: een computer, een internetverbinding en de mogelijkheid om geluid af te spelen. U krijgt via uw scherm de lesgever en de presentatie te zien. U heeft ook de mogelijkheid om gedurende de hele webinar vragen te stellen.

Methodologie

Type opleiding: Webinar (korte online opleiding)

Opleidingsmateriaal:

  • PowerPoint presentatie

Totale Prijs

Leden: € 160
Niet-leden: € 180
Partner BZB: € 160
Incompany: op maat, prijzen op aanvraag

REGISTER TODAY

Francois de Witte

 

François de Witte

 

 

 

 

 

 

Top 5 most read articles at treasuryXL.com and LinkedIn of 2020

| 31-12-2020 | treasuryXL | Kendra Keydeniers

The last day of 2020 is here. The whole world experienced a ‘year not to forget’. I can imagine that when you popped the champagne last year you had other thoughts and plans in mind for 2020.

To make sure you don’t miss out on the pieces that made the most impact this year, we sifted through the data to uncover the articles our readers loved most in 2020 on our website and LinkedIn. (Treasury Topic ‘What is’ articles excluded).

Top 5 treasuryXL website articles of 2020

  1. Corporate Governance and Treasury | Embrace the Corporate Treasury Policy

    by Francois De Witte

  2. Top 5 most common pain points in Treasury

    by Michael Ringeling

  3. Corporates: Caveat IBOR!

    by Daniel Pluta, Enigma Consulting

  4. Exclusive interview with FX specialist Arnoud Doornbos about FX Risk Management

    by treasuryXL, Arnoud Doornbos

  5. How to simplify Procurement and Finance in the Supply Chain

    by Wim Kok

Top 5 treasuryXL LinkedIn posts of 2020

  1. Nomentia (former OpusCapita) makes Liquidity Management free for all customers!

    by Nomentia

  2. What is the difference between Treasury and Accounting?

    by TreasuryXL

  3. The missing part of a Treasury Job Description

    by Aastha Tomar

  4. An introduction to Forwards, Futures and Options Part 1

    by Aastha Tomar

  5. Partner Interview Series | The deeper dive with TIS (Treasury Intelligence Solutions)

    by treasuryXL, TIS

Within two weeks we will post a full recap of 2020 with an overview of the partners and treasury experts that have joined us, together with some interesting treasuryXL facts!

Thank you for being part of the treasuryXL community. Now it’s time to pop the champagne! Let 2021 begin…

 

Kendra Keydeniers

Director, Community & Partners treasuryXL

Update Digital Finance Summit 2020

| 02-12-2020 | François de Witte | treasuryXL |

After having worked for more than 30 years in banking, François launched his own consultancy activity, FDW Consult, specialized in finance and treasury consulting. From 2014 to 2016, he was also Solution Partner Treasury & Finance at USG Professionals. Since then he took up several assignments, including one in the automotive sector with Ginion Group and with Ibanity, part of Isabel Group in the area of PSD2 and open banking. He currently is Senior Project Manager Treasury at Gaming1 (part of Ardent-Group). 

Introduction

For the 5th year, Fintech Belgium organized its annual seminar, the Digital Finance Summit, this year with as main theme “The World After”.
Due to the current sanitary situation, this year’s edition went entirely ONLINE! It was attended by over 400 persons. There were also over 230 virtual stands of exhibitors; The organization was seamless. I perceived a participant experience which was not that far away from a physical gathering.

 Some messages

 Main Stage Sessions

During the general sessions, the main message was Digital becoming the new normal. Xavier Corman, Board Member of Fintech Belgium stated: “The Covid Crisis has also brought good thing. Years worth of Digital transformation.”.

Despite the virtual exchanges, which following on the COVID19 crisis, increased dramatically, in a digital worlds, People and trust become more important. We got also interesting testimonies of banks moving to disruptive models, such as Aion (e-bank providing full set of services for a fixed subscription fee and KBC (using AI models to improve its services in the insurance).

There is a large need for digital identity, like e.g. ITSME in Belgium, but more importantly of the interoperability of the digital identity solutions. Prof Bruno Colmant • highlighted that the creation of Digital currencies represent a new paradigm and a tectonic revolution in the monetary landscape.

Evolution in the cards Landscape

Within the cards busine, the tokenization of cards is increasing, reducing the friction, whilst keeping the security.
Tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number called a token. Often times tokenization is used to prevent credit card fraud. In credit card tokenization, the customer’s primary account number (PAN) is replaced with a series of randomly generated numbers, which ares called the “token.” These tokens can then be passed through the internet needed to process the payment without actual bank details being exposed. The actual bank account or credit card number is held safe in a secure token vault.

 

Evolution in the payments world

Following a three-month public consultation, the EPC (European Payment Council) has published on 30/11/2020 the first version of the SEPA  Request-To-Pay (RTP) scheme rulebook.  The Request to Pay (RtP) is an umbrella term for several scenarios in which a payee takes the initiative to request a specific payment from the payer.

The scheme covers the set of operating rules and technical elements (including messages) that allow a Payee to request the initiation of a payment from a Payer in a wide range of physical or online use cases. The scheme can be considered as a complement to the payment flow because it supports the end-to-end process and lies between an underlying commercial transaction and the payment itself. An RTP as such can be seen as an enabler for digital payments.

The first release of the SEPA RTP scheme is scheduled to go live on 15/6/2021. The SEPA RTP scheme, combined with the SEPA Instant Credit Transfer could be a challenger for card payments, being much cheaper for the merchants. It might take some time to take off.

Conclusion

This conference was a good forum to get an insight in the Belgian FinTech market. I saw a lot of interesting initiatives and consider that Fintech will bring a lot of added value in the payments and corporate treasury landscape.

If you want to learn more on this topic, I invite you to attend the one day training session, which I animate on the topic on 16/12/2020 “PSD2 & Open banking: impact on the financial ecosystem and new challenges

 

François de Witte
Founder & Senior Consultant at FDW Consult
Managing Director and CFO at SafeTrade Holding S.A.
treasuryXL ambassador

TRAINING: PSD2 & Open banking: impact on the financial ecosystem and new challenges

| 23-11-2020 | Francois De Witte

On December 16th, our Expert Francois de Witte will present a Webinar in collaboration with Febelfin-Academy, regarding PSD2 & Open banking: impact on the financial ecosystem and new challenges.

This training program prepares participants for 2 major challenges of the upcoming years in banking: PSD2 & Open Banking. This will have a major impact on the financial ecosystem and will create new challenges.

The goal of this training course is to:

  • Make participants aware of the ways PSD2 & Open Banking affect banks and other players in Europe;
  • Understand the impact of the technical requirements with a focus on strong customer authentication;
  • Outline the risks and responsibilities of the involved parties within the new regulatory framework;
  • Understand the impact of Open Banking APIs (Application Programming interfaces;
  • Understand the impacts of the PSD2 & Open Banking the financial ecosystem;
  • Evaluate the risk and opportunities created by PSD2 & Open Banking the banks and the new players;
  • Determine action plan for your company.

Target Audience

This training course can be followed by multiple target groups:

  • Managers of a banks/PSP’s/Fintechs involved with the payments and digital strategy
  • Product Development Experts (payments)
  • Service providers involved with Open Banking
  • Corporate Treasurers
  • Compliance officers

Prior Knowledge

Advanced: offers practice-based applications to complement the theoretical knowledge already acquired through the “basic level” courses (in-depth learning).

There is no specific preparation required. For persons who are less acquainted with PSD2 and payments, some pre-course reading material can be made available.”

Program

This training program prepares participants for two key challenges of the upcoming years in banking: PSD2 and Open Banking.

Part I: PSD2 and Open Banking – overview:

  • PSD2: Scope and Basic Principles
  • XS2A (Access the Accounts)
  • New Players: AISP and PISP
  • SCA (Strong Customer Authentication)
  • Consent and SCA
  • Requirements for the Banks and TPPs
  • Timetable
  • Trends in Open Banking

Part II: Open banking architecture: Implications for banks and the New Players

  • XS2A: Risks, Responsibilities and obligations of the related parties
  • XS2A: Availability Requirements
  • Setting up the SCA in Practice
  • SCA: Optimization of the Exemptions
  • Security requirements ensuring consumer protection
  • Addressing the fraud and cyberattack risks
  • Technology: building interfaces – APIs (Application Programming Interfaces)
  • European initiatives to standardize the interfaces
  • Practical aspects – Role of Aggregators
  • Group Exercise

Part 3: PSD2: Potential impact on the market and next steps

  • Global impact on the market – New Players
  • Impact on the Payments Landscape
  • Impact on the Cards and Digital Payment Instruments
  • Impact on the Merchants and the e-commerce
  • Impact on corporates
  • FinTech Companies: ready to disrupt banks?
  • Implication on the Digital Banking Strategy
  • The new role of competition and cooperation
  • Action Plan for Banks and New Players
  • Group Exercise

Practical information

Duration: One day training

Date: December 16, 2020

Hours: 9AM-5PM (6 training hours)

Location: This training will be given online

Additional information: This training course will be given in English

Pricing: Members (€510), Non-Members (€610), Partner BZB (€510)

REGISTER HERE

Digital Finance Summit | The World After | 24 November 2020

| 20-11-2020 | François de Witte | treasuryXL |

Only 4 days left for the Digital Finance Summit, the highly renowned conference focusing on the ever-increasing digitalisation of the financial industry, is back again this year to set the path for a bright and more dynamic future at the heart of Europe.

Digital Finance Summit is at the crossroads between Tech Talent, Regtech, Cloud Computing, Big Data, Blockchain, Crypto-assets, Artificial Intelligence, Crowdfunding, Cybersecurity and Banking. It gathers global innovators looking to get inspired by a unique blend of industry leaders and turboboost the whole European FinTech ecosystem!

ONLINE EVENT | NOVEMBER 24 | 2020

Due to the current sanitary situation, this year’s edition goes entirely ONLINE!

For the 5th year in a row, FinTech Belgium is preparing a creative programme spread over 3 stages with Keynotes, Workshops and the European FinTech Pitch Battle!  And, of course, be prepared for the most qualitative networking in Digital Finance in Belgium!

REGISTER NOW!

 

 

 

Recap of the first ‘Meet the Expert’ interview series and full overview

| 04-08-2020 | by Kendra Keydeniers |

A couple of months ago, we started the ‘Meet the Expert’ interview series with experts from the treasuryXL community with different treasury expertise.

Treasury needs to deal with an increasing availability of alternative financial products, intensifying risk management requirements, regulatory and compliance constraints.

What do our experts think about this rapidly growing movements within the treasury world? What developments do they expect in the future? What opportunities do they see?

We interviewed 10 experts over the last 10 weeks and asked them about their treasury career, experiences, the future of treasury and of course how COVID19 impact treasury from their perspective.

Did you miss an interview? No worries, here is a full overview of the ‘Meet the Expert’ series:

 

 

 

Bertus van de Kamp

Senior Business Consultant & Cash Management Specialist

read interview

 

 

 

 

 

Wim Kok

International Business Consultant & Trade Finance Specialist

read interview

 

 

 

 

 

Aastha Tomar

FX & Derivatives | Debt Capital Markets | MBA Finance | Electrical Engineer | Sustainability

read interview

 

 

 

 

 

Michael Ringeling

Corporate Treasury, Corporate Control and Banking

read interview

 

 

 

 

 

Olivier Werlingshoff

Cash- and Treasury management

read interview

 

 

 

 

 

Ger van Rosmalen

Trade Finance Specialist

read interview

 

 

 

 

 

Francois De Witte

Owner at FDW Consult | Sr. Project Manager at Gaming1 | CFO at Safetrade Holding

read interview

 

 

 

 

 

Arnoud Doornbos

Interim Treasury & Finance | Consultant | FX & Interest Derivatives | Treasury Outsourcing| Risk | Fintech | TMS

read interview

 

 

 

 

 

Vinzenco Masile

Treasury Expert/Credit Risk Manager

read interview

 

 

 

 

 

Arnaud Béasse

Debt Management Specialist

read interview

 

 


A big thank you to everyone that worked with me on this series, to everyone that selflessly shared their knowledge and experience with all of us! You guys rock.

If you’ve enjoyed our series so far, don’t worry, this is just the beginning! We are looking into more perspectives to share with you later this year when we will start the second ‘Meet the Expert’ interview series.

Take care and thanks for reading,

Kendra Keydeniers
Community & Partner Manager at treasuryXL

Meet our Experts – Interview François de Witte

07-07-2020 | François de Witte | treasuryXL

After having worked for more than 30 years in banking, our expert François de Witte launched his own consultancy activity, FDW Consult, specialized in finance and treasury consulting. From 2014 to 2016, he was also Solution Partner Treasury & Finance at USG Professionals. Since then he took up several assignments, including one in the automotive sector with Ginion Group and with Ibanity, part of Isabel Group in the area of PSD2 and open banking. He currently is Senior Project Manager Treasury at Gaming1 (part of Ardent-Group). He is also co-founder and CFO of SafeTrade Holding. Key areas of expertise:

We asked him 11 questions, let’s go!

1. How did your treasury journey start?

My roots are not really in treasury, because I have spent 30 years in banking with ING. Mid-2013, I made a major career move to treasury & finance. I could thereby leverage on the expertise I acquired in both Corporate Banking and Payments & Cash Management.

2. What do you like about working in Treasury?

The diversity of topics and people with whom you are in contact. The treasurer monitors the cash & finance, and is in the frontline of the circulatory system of the company. In addition, in view of the technology developments and the globalisation, treasury is a fast moving discipline,

3. What is your Treasury Expertise?

Based upon a gap analysis, during the first couple of years, I strengthened my expertise in the other areas of treasury by self-training. I also started training in some subject matters, at the university and at other training organisations, and this is a good way to keep yourself updated on the latest developments.

4. Do you have examples of risk mitigation, creation of opportunities and/or cost savings?

I have done quite a number of consultancy assignments. In one of them, thanks to a complete review of the processes, including also the business, we managed to gain some 10-15 days working capital management. In another project, we reviewed the account structure and the bank lines and could generate substantial savings. During a treasury scan, I was able to identify foreign exchange risks, which had not been spotted by the management.

5. What has been your best experience in your treasury career until today?

In my current assignment, we have selected a TMS-solution (Kyriba) and are currently finalising the implementation. Simultaneously we created a cash pooling and an In-House bank and streamlined the processes.

6. What has been your biggest challenge in treasury?

When starting in treasury, I did not have experience on the field, and needed to switch from a banker’s approach to a corporate approach. If you want to be successful, you need to also have operational experience. I have spent at the start quite a lot to train myself and to get up to speed in treasury.

7. What’s the most important lesson that you’ve learned as a treasurer?

Cash is and remains king. It is very important to make the management aware of the importance of cash, even if a company is in a cash-rich position.

8. How have you seen the role of Corporate Treasury evolve over the years?

The Treasurer is becoming a business partner of the whole group. As a treasury, you get a good transversal view of the business flows. This is very nice because you are in the cockpit of the finance department.

9. The coronavirus is undoubtedly an unprecedented crisis. In general, can you elaborate on the impact this virus has on treasury from your perspective?

The COVID crisis was a wake-up call. It reminds us that it is important to keep the focus on cash and working capital management. It also highlighted the importance of good well-balanced banking relationships. During the last years, some corporates did not put the right attention to this.

10. What developments do you expect in corporate treasury in the near and further future?

Cash will remain dominant. In addition, we have the automation enabling to work more efficiently. I also see AI (Artificial Intelligence) as enabler, e.g. for cash forecasting. Blockchain will also add value in some areas, such as documentary trade.

11. What is your best advice for businesses without a Treasurer?

 Even if you do not have the critical mass to justify a treasury department, give it the right attention. Try to understand the drivers of your cash generation and to identify the risks. I would also recommend to invest in a treasury management scan.

 

 

François de Witte

Founder & Senior Consultant at FDW Consult

 

 

 

 

Does your business need support in Treasury or a Treasury QuickScan?

We have treasurers available, go to Rent a Treasurer for all information.



Webinar Alert: Treasury Management in the COVID19 crisis

| 26-05-2020 | Francois De Witte

On June 15th, our Expert Francois de Witte will present a Webinar in collaboration with Febelfin-Academy, regarding Treasury Management in the COVID19 Crisis. The Webinar is in Dutch

Omschrijving

Ten gevolge van de COVID19 zijn veel ondernemingen geconfronteerd met cash & liquiditeits problemen. Hoe ga je hiermee om? Welke tools heb je ter beschikking om dit te beheren? Hoe benader je de stakeholders incluis de banken voor bijkomende kredieten.

Deze opleiding heeft als doelstelling om inzicht te geven in:

  • de tools voor het cash & liquidity management en hoe ze te gebruiken;
  • hoe creëer je bijkomende financiële ademruimte: beheer van werkkapitaal – uitstel van kosten;
  • hoe benader je de banken voor uitstel van aflossingen en/of bijkomende kredieten;
  • de inschatting van de risico’s en opportuniteiten van deze nieuwe situatie;
  • het opstellen van een concreet actieplan.

Vereiste voorkennis

Advanced level: biedt praktijkgerichte toepassingen op de reeds verworven theoretische kennis van de “basic level” opleidingen (uitdieping).

Voor wie is deze opleiding bestemd?

De opleiding kan gevolgd worden door verschillende doelgroepen:

  • KMO relatiegelastigden van banken;
  • Financiëel verantwoordelijken van KMO’s en non profit organisaties;
  • Corporate Treasurers.

Programma

Inleiding: Belang van cash & liquidity management

Deel 1: Tools voor het beheer van cash & liquidity management van je onderneming:

  • Wat is mijn cash positie vandaag?
  • Cash forecast voor de komende dagen, of zelfs weken?
  • Beheer van werkkapitaal
  • Cash Burn Rate – Cash runway
  • Dagelijkse stuurgroep Cash Positie
  • Beheer van financiële risico’s

Deel 2: Tips voor het verbeteren van je cash positie:  

  • Beheer van de klantenpost
  • Beheer van de voorraden
  • Beheer van je leveranciers
  • Uitstel van bepaalde uitgaven

Deel 3: Onderhandeling van uitstel vervaldagen of nieuwe kredieten bij de banken:

  • Kredietbeoordeling door banken: aandachtspunten
  • Wat is momenteel voorzien door de overheid, Febelfin en de bank community?
  • Hoe benadert je best de banken: tips en tricks voor je kredietdossier

Deel 4: Risico’s en opportuniteiten – Actieplan:

  • Risico’s en opportuniteiten
  • Tips & Tricks
  • Actieplan

Q & A – Coaching

Pracktische Informatie

  • Duurtijd: 2u30
  • Uren: 10u – 12u30
  • Plaats: Inloggen op online platform
  • Kosten: Leden €160 / Niet-leden: €180

Schrijf je hier in voor de training

 

Corporate Governance and Treasury | Embrace the Corporate Treasury Policy

| 18-02-2020 | François de Witte | treasuryXL |



Corporate Governance

Corporate Governance is a mechanism through which boards and directors can direct, monitor and supervise the conduct and operation of the corporation and its management in a way that ensures appropriate levels of authority, accountability, stewardship, leadership, direction and control.

The ultimate responsibility for Treasury management within an organization lies with the board of directors. Due to the practicalities and technical aspects involved in corporate treasury, the board typically delegates the daily management of risk to responsible individuals in each department. In the case of financial risks, many of these are delegated to the treasurer.

Whilst, due to its specific activities, the corporate treasurer needs to take a lot of actions and decisions independently, it is important that he does this within a framework and Governance. Quite a lot of corporates have formalized this in a “Corporate Treasury Policy”.

Corporate Treasury Policy

The Corporate Treasury Policy is the mechanisms by which the board, or risk management committee (RMC), can delegate financial decisions in a controlled manner. This document should be a summary of all the principles approved by the Board or the Financial Committee of the Board as a mandate of the Board to the treasurer (the Treasury Mandate).

The Corporate Treasury Policy is a framework document, which covers the following areas:

Organization of the Treasury Function

In most of the companies, the Corporate Treasury Reports to the CFO. The CFO is usually himself a Member of the Executive Committee, which itself reports directly to the Board of Directors. (Treasurer – CFO – Treasury Committee – Audit Committee – Board):

A policy should set out clearly which decisions are delegated to the treasurer and when the treasurer should refer a decision back to the board or other person within the organization. Within several corporate, the Board of Directors have delegated the decision process to dedicated committee, like the Risk Committee, and the Liquidity and Funding Committee.

Treasury Control Framework (including the Code of Conduct)

Procedures and controls to manage the risk should be put in place to provide an overall framework for decision-making by the treasury team.

Ideally, this should also include a code of conduct. The Corporate Treasurer should act as a Corporate Custodian. In other words, he is Protector of the company’s assets, and should act according to a strict Code of Conduct and Ethics. There exist examples of codes developed by professional organizations such as IGTA, ATEB, AFTE, ACT and ATEL.

Liquidity and funding

The board should be informed about funding possibilities to put currency, maturity, cost and equity/debt character into a wider context. The board should decide on the strategy but can delegate fund raising decisions and actions to treasury. However, I recommend that Treasury asks the final board approval for strategic decisions (e.g. major syndicated loans, bond issues, etc.).

The board should have an overall view on the liquidity risk of the company. The Board should also define the financial policy, covering the gearing and maturity issues, fixed and variable interest rate obligations, dividend policy and covenants.

Banking Relationship

Banks chosen by the treasurer must be able to meet the needs of the organization, both domestically and internationally. I recommend that the Board approves annually criteria for selecting the banks with whom it will work.

Risk Management

The Treasurer must identify the various risks to which the company is exposed, quantify the impact, and should inform the Board thereof. He should estimate the size of these exposure risks and their impact on the he overall operations and financial performance of the company, and make recommendations in these areas

The board must approve the hedging policy, the company’s foreign exchange, interest rate and commodity risk management policy and its attitude to risk. It should define which part of the risks must be hedged and the hedging horizon. I recommend that the Treasurer submits at regular intervals to the Board the list of authorized instruments, the amount per instrument and their term

Investment Policy – Counterparty Credit Risk

The board should approve the treasury’s Investment policy including the choice of instruments, the list of counterparties used + the maximum amount/counterparty & maturity. It is recommended that the Board provides guidelines and limits per instrument.

It is recommended that the Board approves the guidelines for fixing counterparty limits, and maximum exposure per counterparty.

Authorized instruments and Arrangements – Authorized Approvers

The Treasurer should make sure that the board must understands and approve the strategies and instruments used and sets guidelines for the appropriate limits for their use. These guidelines need to ensure that treasury has not sacrificed long-term flexibility or

survival for short-term gain, especially in view of the volatile financial market’s situation.

Treasury Operational Risk

The treasurer should make the Board aware of the operational risks to which the company is exposed. He should provide recommendations in this area. Furthermore, the treasurer should also submit recommendations to the board on the treasury organization and the ways to reduce the operational risks.

Monitoring

A Corporate Treasury Policy has only sense, if there is a regular follow up and control framework; Hence procedures and controls to manage the risk should be put in place to provide an overall framework for decision-making by the treasury team.

It is also important to provide to the Board a regular update on the way the treasurer complies with the policy. The policy should also be regularly reviewed.

Treasury must alert the board to external changes and internal strategic developments, which may have long-term implications for the organization and make proposals for managing them.

The policy needs also to be reviewed at regular intervals each “Policy” in function of the market and of other internal or external developments. I recommend having treasury on the Board’s agenda on a quarterly basis.

Conclusion

Treasury is not an island in the company. It is closely linked to the corporate governance. Hence it is important to define the right framework.

I recommend to corporates to put in place a treasury policy validated by the Board of Directors and reviewed regularly. It is important to update the Board at regular intervals about strategic topics, such as strategic financing topics and risk management.

The treasurer has also an important educational role, as he must be able to make complex treasury topics understandable for the board members.

Hence there must be a good interaction between the treasurer, the CFO and the Board is key, where the Treasurer is the linking pin.

 

François de Witte
Founder & Senior Consultant at FDW Consult
Managing Director and CFO at SafeTrade Holding S.A.
treasuryXL ambassador