Contents

,

Foreword

Preface

Acknowledgments

Part One: The World of Corporate Treasury

Chapter One: Role of Treasury in a Global Corporation

Introducing Treasury Leadership

Organisation Structure and Responsibilities

Treasury Functions and Responsibilities

KPIs and Deliverables

A Day at the Office—What Does the Treasurer Do?

Summary

Chapter Two: Treasury Design

Key Elements of Treasury Design

Introducing Centralisation

Evolution of Treasury Models

Summary

Chapter Three: Treasury Culture

Qualities

General Skills

Technical and Work-Related Skills

The Many Hats of the Treasurer

Summary

Chapter Four: Importance of Operations and Control Efficiency

Tools

Different Offices: Front, Middle, and Back

Summary

Part Two: Transactions and Cash Management

Chapter Five: Account Management and Structure

Putting an Account Structure in Place

Account Operation and Approaches

Rationalising Account Structures

Examples of Account Structures Across Sectors

Summary

Chapter Six: The Movement of Money

Money Transfer Mechanisms

Domestic Clearing and Settlement Systems

Cross-Border Payments and Collections

Summary

Chapter Seven: Netting

Introduction and Concepts

Netting Implementation

Benefits and Caveats of a Good Netting Solution

Summary

Chapter Eight: Liquidity Management Introduction and Float

Introducing Liquidity Management

Pooling as a Concept

Float and Its Causes

Summary

Chapter Nine: Cash Pooling and Efficiency

Cash Concentration Structures

Pooling Structures

Implementation Aspects of Concentration Structures

Summary

Chapter Ten: Cash Flow Forecasting

Forecasting in the Context of Liquidity Management

Forecasting Methods

Summary

Part Three: Balance Sheet and Liquidity Management

Chapter Eleven: Liquidity and Working Capital

Working Capital in the Operating Cycle

Cash Conversion Cycle

Financial Supply Chain and Its Potential Pain Points

Summary

Chapter Twelve: Financial Strength and Linkages with Liquidity

Importance of Company Financials

Key Financial Ratios

Summary

Chapter Thirteen: Sources of Capital

Capital Markets

Capital Structure

Factors in the Capital Decision

Debt Capital Markets

Equity Capital Markets

Summary

Chapter Fourteen: Financing the Supply Chain

Physical and Financial Supply Chains

Different Financing Solutions

Summary

Chapter Fifteen: Managing Operating Cash and Investments

Different Elements of Cash

Managing Operating Cash

Surplus Cash and Investments

Considerations and Aspects of Investment Decisions

Investment Process

Summary

Chapter Sixteen: Credit Ratings and Bank Credit Assessment

Credit Ratings

Credit Rating Methodology

Bank Credit Assessment Process

Important Focus Areas and Discussion Points with Banks During Credit Reviews

Summary

Part Four: Markets and Risk Management

Chapter Seventeen: Art and Science of Risk Management

Kinds of Risk

Classical Definitions

Why Manage Financial Risk?

Styles of Risk Management

Factors Impacting Risk

What Does Risk Management Do?

Objective of Risk Management

Summary

Chapter Eighteen: Markets and Risk Aspects of Each Market

World of Markets

Movement of Markets

Summary

Chapter Nineteen: Risk Management in Practice: Ensuring the Right IMAGE©

IMAGE© Methodology

Risk Identification

Risk Measurement

Risk Accounting and Reporting

Risk Governance

Risk Management Evaluation

Summary

Chapter Twenty: Products for Managing Risk

Forwards Family

Options Family

Swaps Family

Credit Family

Summary

Chapter Twenty One: Combining the Products to Manage Risk: Risk Governance

Devising Risk Strategy Using Products

Using Products to Manage Risk

Credit Risk

Liquidity Risk: Balance Sheet and Asset-Liability Management

Use of Analysis

Operations and Technology Risk

Legal and Compliance Risk

Summary

Chapter Twenty Two: Risk Management Governance Strategies

Key Elements of the Governance Strategy

Sample Strategy A

Sample Strategy B

Sample Strategy C

Summary

Chapter Twenty Three: Operational Aspects

Documentation

ISDA Framework of Documents

Execution

Summary

Part Five: The Toolkit

Chapter Twenty Four: Treasury Policy

Framework

Aspects of Policy Implementation that Need Closer Scrutiny

Review

Implementational Aspects

Summary

Chapter Twenty Five: Treasury Systems

Treasury Management System Background

Some System-Related Questions

TMS Establishment Process

Developments and Standards

Summary

Chapter Twenty Six: Centralisation

Rationale for Centralisation

Basic Model Design

Post-Model Design Stage

Barriers to Centralisation

Summary

Chapter Twenty Seven: Key Performance Metrics for a Treasury

Introducing Performance Metrics

Some Criteria for Deciding Performance Metrics

Performance Metrics

Some Caveats on Metrics and Evaluation

Sample Treasury Performance Metrics

Treasury Fitness

Summary

Chapter Twenty Eight: Banks and Service Relationships

Sample Bank Organisation Structure

Banking Services and Products for a Corporate Treasury

Bank Selection and RFP Process

Review Process

Service and Relationship Management

Summary

Chapter Twenty Nine: Operations and Control Checklist

List of Processes

Right Control at Treasury

Control Checks and Reviews

Some Common Causes for Error and Control Lapses

Summary

Chapter Thirty: Outsourcing

Selection Stage

Pre-Implementation

Implementation

Post-Implementation

Summary

Chapter Thirty One: Building and Sustaining a Treasury Culture

Evaluation

Summary

Chapter Thirty Two: Managing Treasury in Uncertain Times

Uncertainty and Its Impact on Treasury Management

Triggers and Events

Simple Method to Manage Treasury During Times of Uncertainty

Summary

Glossary

Further Reading

About the Author

About the Website

Index

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