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The Handbook of Global Corporate Treasury

Book Description

A complete guide to operating a corporate treasury from a global perspective

For CFOs and treasurers looking to re-align their treasuries with the growth of the global firm, bankers who seek to maximize the value they create for clients, treasury and finance firm employees, and even finance students, this book provides an easy-to-read approach to this exciting and increasingly complex world. It includes a toolkit that gives practitioners a reference point that they can adapt immediately for use in their firms, providing a low-cost, high-efficiency advisory solution they previously lacked.

  • Offers a uniquely global perspective unlike most books on the subject, which tend to focus on the US market

  • Incorporates a bottom-up, segmented approach that uses fundamental building blocks to form a comprehensive overview of corporate treasury

  • Includes a toolkit that provides a ready foundation for learning based on checklists, templates, and scorecards that can be adapted and customized to the needs of an individual firm

  • Written by an author with more than 13 years working in different aspects of corporate and institutional banking, from capital markets to transaction services

  • Written by an author who has spent many years working

The Handbook of Global Corporate Treasury serves as a ready reference for anyone interested in the nuances and practicalities of the complex world of corporate treasury.

Note: The ebook version does not provide access to the companion files.

Table of Contents

  1. Cover
  2. Contents
  3. Title
  4. Copyright
  5. Dedication
  6. Foreword
  7. Preface
  8. Acknowledgments
  9. Part One: The World of Corporate Treasury
    1. Chapter One: Role of Treasury in a Global Corporation
      1. Introducing Treasury Leadership
      2. Organisation Structure and Responsibilities
      3. Treasury Functions and Responsibilities
      4. KPIs and Deliverables
      5. A Day at the Office—What Does the Treasurer Do?
      6. Summary
    2. Chapter Two: Treasury Design
      1. Key Elements of Treasury Design
      2. Introducing Centralisation
      3. Evolution of Treasury Models
      4. Summary
    3. Chapter Three: Treasury Culture
      1. Qualities
      2. General Skills
      3. Technical and Work-Related Skills
      4. The Many Hats of the Treasurer
      5. Summary
    4. Chapter Four: Importance of Operations and Control Efficiency
      1. Tools
      2. Different Offices: Front, Middle, and Back
      3. Summary
  10. Part Two: Transactions and Cash Management
    1. Chapter Five: Account Management and Structure
      1. Putting an Account Structure in Place
      2. Account Operation and Approaches
      3. Rationalising Account Structures
      4. Examples of Account Structures Across Sectors
      5. Summary
    2. Chapter Six: The Movement of Money
      1. Money Transfer Mechanisms
      2. Domestic Clearing and Settlement Systems
      3. Cross-Border Payments and Collections
      4. Summary
    3. Chapter Seven: Netting
      1. Introduction and Concepts
      2. Netting Implementation
      3. Benefits and Caveats of a Good Netting Solution
      4. Summary
    4. Chapter Eight: Liquidity Management Introduction and Float
      1. Introducing Liquidity Management
      2. Pooling as a Concept
      3. Float and Its Causes
      4. Summary
    5. Chapter Nine: Cash Pooling and Efficiency
      1. Cash Concentration Structures
      2. Pooling Structures
      3. Implementation Aspects of Concentration Structures
      4. Summary
    6. Chapter Ten: Cash Flow Forecasting
      1. Forecasting in the Context of Liquidity Management
      2. Forecasting Methods
      3. Summary
  11. Part Three: Balance Sheet and Liquidity Management
    1. Chapter Eleven: Liquidity and Working Capital
      1. Working Capital in the Operating Cycle
      2. Cash Conversion Cycle
      3. Financial Supply Chain and Its Potential Pain Points
      4. Summary
    2. Chapter Twelve: Financial Strength and Linkages with Liquidity
      1. Importance of Company Financials
      2. Key Financial Ratios
      3. Summary
    3. Chapter Thirteen: Sources of Capital
      1. Capital Markets
      2. Capital Structure
      3. Factors in the Capital Decision
      4. Debt Capital Markets
      5. Equity Capital Markets
      6. Summary
    4. Chapter Fourteen: Financing the Supply Chain
      1. Physical and Financial Supply Chains
      2. Different Financing Solutions
      3. Summary
    5. Chapter Fifteen: Managing Operating Cash and Investments
      1. Different Elements of Cash
      2. Managing Operating Cash
      3. Surplus Cash and Investments
      4. Considerations and Aspects of Investment Decisions
      5. Investment Process
      6. Summary
    6. Chapter Sixteen: Credit Ratings and Bank Credit Assessment
      1. Credit Ratings
      2. Credit Rating Methodology
      3. Bank Credit Assessment Process
      4. Important Focus Areas and Discussion Points with Banks During Credit Reviews
      5. Summary
  12. Part Four: Markets and Risk Management
    1. Chapter Seventeen: Art and Science of Risk Management
      1. Kinds of Risk
      2. Classical Definitions
      3. Why Manage Financial Risk?
      4. Styles of Risk Management
      5. Factors Impacting Risk
      6. What Does Risk Management Do?
      7. Objective of Risk Management
      8. Summary
    2. Chapter Eighteen: Markets and Risk Aspects of Each Market
      1. World of Markets
      2. Movement of Markets
      3. Summary
    3. Chapter Nineteen: Risk Management in Practice: Ensuring the Right IMAGE©
      1. IMAGE© Methodology
      2. Risk Identification
      3. Risk Measurement
      4. Risk Accounting and Reporting
      5. Risk Governance
      6. Risk Management Evaluation
      7. Summary
    4. Chapter Twenty: Products for Managing Risk
      1. Forwards Family
      2. Options Family
      3. Swaps Family
      4. Credit Family
      5. Summary
    5. Chapter Twenty One: Combining the Products to Manage Risk: Risk Governance
      1. Devising Risk Strategy Using Products
      2. Using Products to Manage Risk
      3. Credit Risk
      4. Liquidity Risk: Balance Sheet and Asset-Liability Management
      5. Use of Analysis
      6. Operations and Technology Risk
      7. Legal and Compliance Risk
      8. Summary
    6. Chapter Twenty Two: Risk Management Governance Strategies
      1. Key Elements of the Governance Strategy
      2. Sample Strategy A
      3. Sample Strategy B
      4. Sample Strategy C
      5. Summary
    7. Chapter Twenty Three: Operational Aspects
      1. Documentation
      2. ISDA Framework of Documents
      3. Execution
      4. Summary
  13. Part Five: The Toolkit
    1. Chapter Twenty Four: Treasury Policy
      1. Framework
      2. Aspects of Policy Implementation that Need Closer Scrutiny
      3. Review
      4. Implementational Aspects
      5. Summary
    2. Chapter Twenty Five: Treasury Systems
      1. Treasury Management System Background
      2. Some System-Related Questions
      3. TMS Establishment Process
      4. Developments and Standards
      5. Summary
    3. Chapter Twenty Six: Centralisation
      1. Rationale for Centralisation
      2. Basic Model Design
      3. Post-Model Design Stage
      4. Barriers to Centralisation
      5. Summary
    4. Chapter Twenty Seven: Key Performance Metrics for a Treasury
      1. Introducing Performance Metrics
      2. Some Criteria for Deciding Performance Metrics
      3. Performance Metrics
      4. Some Caveats on Metrics and Evaluation
      5. Sample Treasury Performance Metrics
      6. Treasury Fitness
      7. Summary
    5. Chapter Twenty Eight: Banks and Service Relationships
      1. Sample Bank Organisation Structure
      2. Banking Services and Products for a Corporate Treasury
      3. Bank Selection and RFP Process
      4. Review Process
      5. Service and Relationship Management
      6. Summary
    6. Chapter Twenty Nine: Operations and Control Checklist
      1. List of Processes
      2. Right Control at Treasury
      3. Control Checks and Reviews
      4. Some Common Causes for Error and Control Lapses
      5. Summary
    7. Chapter Thirty: Outsourcing
      1. Selection Stage
      2. Pre-Implementation
      3. Implementation
      4. Post-Implementation
      5. Summary
    8. Chapter Thirty One: Building and Sustaining a Treasury Culture
      1. Evaluation
      2. Summary
    9. Chapter Thirty Two: Managing Treasury in Uncertain Times
      1. Uncertainty and Its Impact on Treasury Management
      2. Triggers and Events
      3. Simple Method to Manage Treasury During Times of Uncertainty
      4. Summary
  14. Glossary
  15. Further Reading
  16. About the Author
  17. About the Website
  18. Index