Treasury Policy and Procedures
Treasury Policy would be considered a basic requirement for all companies as part of their risk assessment of the financial aspects of their operations.
Needless to say, all companies interested in best practice treasury management would start with a treasury policy. Whilst it used to be the domain of plcs and large private companies, we are seeing an increasing trend in treasury policy being adopted by mid-sized corporates in both the private and publicly-quoted arena.
Other Related Services
- Treasury Parameters & Procedures Document
- ISDA Documentation Review
- Treasury Dealing Mandate Review
Company E is a privately owned Irish company with operations in Ireland and the UK. Treasury Solutions was retained in order to produce a Treasury Policy document supplemented by a Treasury Parameters & Procedures document in order to ensure that the company’s approach to risk management was in a structured manner.
- Review Statutory Accounts to get a high level view of operations and key strategic and commercial objectives
- Confirm areas to be subject to Group Treasury Policy
- Obtain other pertinent data from Group personnel covering items from group structure (where does Treasury sit within the organisation?) to relationship banks
- Define and agree objectives with Group personnel
- Draft detailed policy provisions to meet objectives and present to Group Financial Director
- Set out in detail the company’s attitude to counterparty risk i.e. establishing the criteria for selecting Banks and Financial Institutions with whom the company will place deposits, enter into swap and foreign exchange transactions, etc.
- Agree final wording of document and present to Board Audit Committee
- Subsequent to board approval of the Treasury Policy, produce a detailed Parameters & Procedures document dealing with matters such as dealing limits, approved derivative instruments and also dealing with treasury reporting to the Board and the Group Financial Director in detail.
The final output was a policy document that was presented and approved by a sub-committee of the main Board to whom authority for risk management had been delegated. This sub-committee included some non-executive Directors who would be well known in Irish financial circles. Subsequently, the Treasury Policy was reviewed at least annually by the Audit Committee. It also represented tangible evidence for both internal and external audit purposes of a structured approach to risk management which would be considered fundamental in the current corporate governance environment, bearing in mind that the Board of Directors are responsible under company legislation for the management of risk within a company.
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What Our Clients Say
We are a large company with a turnover of c.€250m. Initially we used Treasury Solutions to review our treasury policy and procedures to ensure that they were appropriate to an organisation of our size and complexity. Since then the group refunded its entire debt as part of a major acquisition and the advice we received in relation to strategy, bank covenants and facility letters was invaluable. TS have continued to support us through the current financial crisis with pragmatic and independent advice.
CFO,, Large Company
I have used Treasury Solutions since 2005 for a variety of roles - from the creation of a top class Treasury Policy that is tangible and meaningful, to a review of our treasury function from an Audit and Best Practice viewpoint, to adhoc day-to-day advice and views (on) what is happening in the re-financing market….reliable, consistent and customer-focused; they are very much a part of my decision making process.
CFO,, Large PLC and Private Company
Since the downturn, I have used Treasury Solutions as a sounding board and to watch my back in terms of banking covenants and funding strategies. At all times, I have found them to be approachable, plain speakers and experts in their area. I think … their fees could have been the best spent money that our company has spent in the last few years.
CFO,, Major Private Company
We used Treasury Solutions to assist us with the development of a foreign exchange policy. Their suggestions were practical and well communicated. They understood the subject thoroughly and we will use them again in the future should the need arise.
FC, , Private Irish Company with turnover of €160m
We are an Irish owned multinational company with a turnover in the region of €350m and 2,000 staff. Our treasury function is very complex with a large number of FX exposures and funding arrangements…Treasury Solutions has given invaluable support on a wide range of matters from strategic policy to day-to-day advice….independent, professional and thoroughly competent.
Group Finance Director,, Large Private Company
John Finn of Treasury Solutions continues to be an invaluable help to us as a small business in our long-term financial planning and in our dealings with financial institutions. In most recent times, his experience and up-to-date knowledge of the financial scene allowed us to be confident of our case in prolonged and difficult negotiations with our main banking partner. Encouraged by John’s tenacity and advice we achieved a favourable long-term result, which will allow us to get back to focusing fully on the running and developing of our business.
Ruairí & Marie-Thérèse de Blacam,, Inis Meáin Rest. & Suites