Risk Management explained by treasuryXL

26-05-2022 | treasuryXL | LinkedIn


From a Treasury perspective, Risk Management is the practice of planning for unexpected expenditures. It is primarily about mitigating and avoiding the impact of the changing financial environment on the company’s cash flow objectives.

Risk management is a broad term, though. Depending on the context of a company’s operations, it can also have very different meanings, so it is also useful here to point out the forms of risk management that fall outside the scope of Treasury. This is not an article about governmental regulation, earthquakes, political instability, or the threat of potential new business competitors. These forms of risk are the concern of other departments within the corporation. This article is about risk management specifically within the context of Treasury.


Click on the image below to learn more about Risk Management.

  • What does a Risk Manager do?
  • Examples of Risk Management activities
  • Frequently asked Risk Management questions
  • Risk Management summary

Looking back at the FinanzSymposium in Mannheim, Germany, organized by SLG | Pieter de Kiewit

25-05-2022 | treasuryXL | Pieter de KiewitLinkedIn |


We at treasuryXL consider it our task to inform you about all that’s interesting in Treasury. Last week Schwabe, Ley & Greiner organized their FinanzSymposium for the 33rd time. One of our partners, Pieter de Kiewit of Treasurer Search, volunteered to go and check it out. This is what he came back with.

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Turbulent markets put focus on evaluated pricing

24-05-2022 | treasuryXL | Refinitiv | LinkedIn |


Fixed income volatility looks like it will be around for a while, due to whipsaw-like changes in the overall economic environment. In such an environment, firms need to have the right evaluated pricing to ensure they are pricing their portfolios at fair value levels and that they are complying with regulations.


Read more

Subscribe and receive your 41 pages ‘easy-to-read’ eBook, What is Treasury?

16-05-2022 | treasuryXL | LinkedIn |


Treasury, Corporate Finance, Cash Management, Risk Management, Working Capital Management and Blockchain. What are the purposes of these treasury functions?

treasuryXL created this eBook based on the most relevant best practices that Treasury experts provided over the last years. We bundled the most important information for you and created easy to read and understand articles about the main subjects within the World of Treasury.

We took a deeper dive into each of the above-mentioned treasury functions and highlight:

  • The purpose of each named Treasury function (What is?)
  • What specialists do
  • Examples of Activities
  • Summary of Frequently Asked Questions and answers
  • Conclusion

How to receive this eBook for Free?

We simply giveaway two presents for you! By signing up for our newsletter you will automatically receive the following in your inbox:

  1. On Fridays, our Coffee Break weekly newsletter will land in your inbox. In this weekly newsletter, we will highlight the whole week full of the latest treasury news within our community.
  2. The 41 pages eBook, What is Treasury?


Subscribe, Join, Download and Relax.

Welcome to our community and have fun reading!



Director, Community & Partners at treasuryXL





GTreasury Announces Deal with Moody’s Analytics to Provide Customers with Asset and Liability Management (ALM) Capabilities

10-05-2022 | treasuryXL | Gtreasury | LinkedIn |

Continuing to modernize its digital treasury and risk management ecosystem with strategic partnerships, GTreasury now offers platform interoperability and data integration with Moody’s Analytics’ ALM SaaS product

Source: Gtreasury

CHICAGO, Ill. – May 10, 2022 – GTreasury, a treasury and risk management platform provider, today announced a collaboration with Moody’s Analytics, a global provider of analytic tools and risk assessment capabilities, to enable customers to seamlessly leverage Moody’s Analytics’ market-leading asset and liability management (ALM) SaaS product. Moody’s Analytics’ ALM SaaS product is now available as an interoperable and integrated component within GTreasury’s continuously modernizing software-as-a-service ecosystem for treasury and finance teams.

As small and medium-sized financial institutions grow, accumulated data reaches volume and complexity beyond what manual spreadsheets or outdated software can reliably or efficiently handle. These legacy approaches place increasing strain on internal staff – especially when accelerating growth puts financial institutions within the purview of new regulatory reporting requirements. Banks, credit unions, and other institutions in this position must implement automated capabilities that remove the burdens of routine ALM tasks and monitor and manage their risk far more effectively and completely.

Moody’s Analytics’ ALM SaaS product leads the industry in meeting these requirements, offering a seamless enterprise platform that integrates ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities. Institutions leveraging the product can fully integrate ALM into their business management and regulatory compliance processes, optimizing capital distribution to achieve strategic benchmarks. The product eases the management of even the most complex ALM tasks, while also providing a foundation for defining client behavioral models and forecasts, and delivering data-backed insights that drive key business decisions.

“Moody’s Analytics offers the most comprehensive and capable ALM product on the market today,” said Terry Beadle, Global Head of Corporate Development at GTreasury. “Small and mid-sized financial institutions struggling under the burden of their asset and liability management duties, especially from a regulatory compliance perspective, are instantly and significantly empowered by the automation and powerful tooling Moody’s Analytics’ ALM SaaS product puts at their command. We’re excited to introduce the many benefits of Moody’s Analytics’ offering to our customers as an interoperable, fully data-integrated, market-leading component of the GTreasury ecosystem.”

With Moody’s Analytics’ ALM SaaS product now available as another component within GTreasury’s ecosystem, customers can easily integrate their data and begin to harness the ALM solution across their treasury and risk management practices.

“Pairing GTreasury’s treasury and risk management system and our own leading ALM SaaS product is an advantageous strategy for firms optimizing performance and streamlining operations,” said Cayetano Gea-Carrasco, Managing Director at Moody’s Analytics. “We’re proud to work with GTreasury to help customers to realize their efficiency goals, and to make more informed and accurate business management decisions based on this seamless data.”

About GTreasury

GTreasury is committed to connecting treasury and digital finance operations by providing a world-class SaaS treasury and risk management system and integrated ecosystem where cash, debt, investments and exposures are seamlessly managed within the office of the CFO. GTreasury delivers intelligent insights, while connecting financial value chains and extending workflows to third-party systems, exchanges, portals and services. Headquartered in Chicago, with locations serving EMEA (London) and APAC (Sydney and Manila), GTreasury’s global community includes more than 800 customers and 30+ industries reaching 160+ countries worldwide.

About Moody’s Analytics

Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs.

The world’s largest treasury event is returning to Vienna in September | 10% discount via treasuryXL

09-05-2022 | Eurofinance | treasuryXL |


EuroFinance International Treasury Management, the world’s largest and most influential treasury event, will take place in Vienna from September 21st-23rd 2022. Returning in-person after 3 years with more than 2000 attendees including 150 world-class speakers, the event offers unparalleled networking and insights from the world’s most senior corporate treasurers. treasuryXL is proud media partner of the 31st edition of the EuroFinance event.

Why attend?

  • Be inspired by headline speakers as they interrogate a changed world including Guy Verhofstadt, member of the European Parliament and Göran Carstedt, former corporate executive of Volvo and IKEA
  • Get practical solutions to treasury challenges with new case studies and immersive discovery labs
  • Hear from the disruptors at the new The Future of Money Stage
  • Delve into the latest innovations and new technology driving change, and how to apply them to your treasury
  • Meet with more than 100 banking and tech partners and join forces to innovate and shape the future


For the full agenda and to register, please click here

TreasuryXL contacts can claim a 10% discount with code: MKTG/TXL10


Rapid changes in trading are taking place. Are you keeping pace?

05-05-2022 | treasuryXL | Refinitiv | LinkedIn |


Automation doesn’t make FX, equities and fixed income traders unnecessary, but it does make them more efficient – which ultimately can lead to better profits. Read more

How to Harness Hedging for a Strategic Advantage

03-05-2022 | treasuryXL | Gtreasury | LinkedIn |


Hedging can be used as a strategic advantage in times of volatility, especially for currency risk. Register for this Treasury & Risk webcast to discover how hedging can be used as a strategic advantage in times of volatility. 

Date: Wednesday, May 4, 2022

Time: 2:00 p.m. ET |11:00 a.m. PT

Cost: Complimentary

Many companies are exposed to currency risk: a risk to earnings driven by changes in currency exchange rates. A hedge program is designed to drive predictability in financial statements and protect margin and earnings from unexpected changes. However, there are common roadblocks to hedging, like complex accounting rules and control requirements. Plus, current global events have paused companies who think it’s too late – or too risky – to get started. But ignoring hedging is not going to make the risk go away.

How do you safely harness hedging? What solutions provide continuity in addressing market and internal risk? When is the right time to hedge?

Join this webcast to discover how hedging can be used as a strategic advantage in times of volatility. You will learn to:

  • Understand what hedging can and cannot do, and where and how it can bring you the most success.
  • Identify key elements in an FX hedge program necessary for success.
  • Navigate market events and volatility, and redirect resources while keeping business operations steady.
  • Automate treasury and accounting workflows to reduce risk and manual errors.
  • Improve compliance and operational efficiencies.


(Not able to attend? We recommend you STILL REGISTER – you will receive an email with how to access the recording of the event)


Why becoming a Register Treasurer is so much more than completing a course!

02-05-2022 | treasuryXL | Pieter de KiewitLinkedIn |


Next to being a treasury recruiter, I am also a very happy member of the so-called curatorium of the postgraduate education Treasury Management & Corporate Finance of the Vrije Universiteit Amsterdam. Graduates completed an intense 18-month program and can be recognized by the “RT” behind their name: Register Treasurer which can be translated into “chartered treasurer”. The program is taught in English, has already existed for over 20 years and there are many “RTs” in prominent places in the treasury community. Last week, I attended the latest diploma ceremony, was inspired, and decided I want to tell you more.

Read more

The impact of the monetary policy of central banks on FX hedging

28-04-2022 | treasuryXL | ILFA | LinkedIn |


Several central banks in the world have adjusted their monetary policy since Q4 2021. In Europe, it was the Hungarian central bank that chose to raise its key rate from 0.60% to 0.90% on June 23, 2021. A day later the Czech central bank followed suit with an increase in the main interest rate from 0.25% to 0.50%. As of January 2022, the rates of these central banks are 4.30% for the Hungarians and 3.75% for the Czechs.

In Western Europe, it was the central bank of Norway (Norges Bank) that raised the rates first. On September 23, Norges Bank decided to raise the deposit rate from 0.00% to 0.25%. This was followed by the Bank of England on December 16. The Bank of England interest rate was raised from 0.10% to 0.25%.

The US Federal Reserve (the Fed) closed the year 2021 by commenting that the Federal Fund rate would rise after the end of the QE program, which is scheduled for March 16, 2022. At that time, about 3 rate hikes were planned for 2022. However, after the recent inflation figures (December 7% yoy), the Fed gave a different signal and the markets are now forecasting 7 rate hikes in 2022.

Regarding the European Central Bank (ECB), interest rates still seem calm at the moment. ECB President Lagarde has hinted that the central bank is likely to buy bonds at a monthly rate of EUR 20 billion as early as the fourth quarter of 2022. In fact, this purchase program has no official end date. Importantly, as long as the ECB buys bonds, interest rate hikes are out of the question. So far, the ECB maintains its view that the current high inflation is temporary.

The influence of key rates

The change in the central banks’ strategy regarding their policy rates has a direct impact on short-term interest rates. Traditionally, short-term swap rates are very sensitive to the prospect of rate hikes or cuts. It is therefore no surprise that Czech and Hungarian short-term swaps have risen significantly. For example, the one-year Hungarian swap rose from 1.02% in May to 5.32% today. To a lesser extent, US and UK swap rates have also increased. On the contrary, the euro-zone 1-year swap rate was flat for much of 2021 and has only recently started to improve a bit.

The interest rate adjustments in the monetary policies of the various central banks have a major impact on the FX forward market when hedging foreign currencies against the EUR through an FX forward contract. The number of forward points increase significantly when one of the higher-yielding currencies is hedged against the EUR. For example, the number of forward pips for hedging USD against EUR for a 12-month period was 92 (0.0092) at the start of Q4. Due to increasing interest rate differentials between the US and the eurozone, this has risen to 165 (0.0165) at the end of January 2022. This represents an increase of 79%. Before hedging GBP against EUR, the number of pips also increased significantly. The number of forward pips on a 12-month hedge increased from 83 at the start of the fourth quarter to currently 133 forward pips, an increase of 60%.

The differences between the central bank’s interest rate policy have a significant impact on currency hedging through the use of forwards. The slow ECB action against the faster action of other central banks has led to a disadvantage for parties (exporters) which sell the foreign currency against the EUR in the future. On the other hand, parties (importers) which want to buy the foreign currency in the future have an advantage. They get more foreign currency for every EUR due to the high number of forward points (irrespective of the development of the spot rate). This situation may remain until central banks’ interest rate policy diverges to a lesser extent than they do now. This is not expected to be the case anytime soon.

A solution?

Good FX risk management can eliminate a large part of these Non-Core financial risks for companies. The first step is always identifying the different types of FX risks. The next step is neutralizing these risks on time with the right financial hedging instruments. A good cash flow forecast is essential for an adequate analysis.

FX risk management is often complex. Profound knowledge of the financial markets and available hedging instruments is essential for successfully protecting the company. Would you like to know more or are you interested in tailor-made treasury advice? Please contact the Treasury Desk.