9.7 - Manage treasury operations
PCF ID: 10734 | Elements: 62 | Metrics Available: Y | Benchmarkable: 4
Definition
Managing business's investments in trading in bonds, currencies, financial derivatives, etc. Manage the financial assets and holdings of the organization. Optimize the organization's liquidity. Invest excess cash. Reduce financial risks.
Overview
This process group covers manage treasury operations within the broader context of Manage Financial Resources.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 9.7.1 | Manage treasury policies and procedures | 10758 | 8 | Y |
| 9.7.2 | Manage cash | 10759 | 8 | Y |
| 9.7.3 | Manage in-house bank accounts | 10760 | 7 | N |
| 9.7.4 | Manage debt and investment | 10761 | 8 | N |
| 9.7.5 | Monitor and execute risk and hedging transactions | 11208 | 24 | Y |
| 9.7.6 | Manage financial fraud/dispute cases | 16958 | 0 | N |
9.7.1 - Manage treasury policies and procedures
PCF ID: 10758
Definition: Managing rules and regulations for investments in trading in bonds, currencies, financial derivatives, etc. Establish policies and procedures for investments made. Optimize liquidity in treasury operations.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.7.1.1 | Establish scope and governance of treasury operations | 10885 | 0 | N |
| 9.7.1.2 | Establish and publish treasury policies | 10886 | 0 | N |
| 9.7.1.3 | Develop treasury procedures | 10887 | 0 | N |
| 9.7.1.4 | Monitor treasury procedures | 10888 | 0 | N |
| 9.7.1.5 | Audit treasury procedures | 10889 | 0 | N |
| 9.7.1.6 | Revise treasury procedures | 10890 | 0 | N |
| 9.7.1.7 | Develop and confirm internal controls for treasury | 10891 | 0 | N |
| 9.7.1.8 | Define system security requirements | 10892 | 0 | N |
9.7.1.1 - Establish scope and governance of treasury operations
Definition: Selecting opportunities and the authoritative body for investments in trading in bonds, currencies, financial derivatives, etc.
9.7.1.2 - Establish and publish treasury policies
Definition: Creating and providing investment regulations for the organization. Establish policies and procedures for investments to optimize liquidity in treasury operations. Create a written copy of it.
9.7.1.3 - Develop treasury procedures
Definition: Making processes for investing. Create steps for investments in bonds, currencies, and financial derivatives in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
9.7.1.4 - Monitor treasury procedures
Definition: Checking treasury processes in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
9.7.1.5 - Audit treasury procedures
Definition: Auditing the treasury function.
9.7.1.6 - Revise treasury procedures
Definition: Reassessing all treasury procedures based on audit findings.
9.7.1.7 - Develop and confirm internal controls for treasury
Definition: Creating and managing the internal control systems for investments in bonds, currencies, and financial derivatives to verify procedures.
9.7.1.8 - Define system security requirements
Definition: Describing the need of system security requirements for controlling access, reliability of information, accountability, and availability of information in the organization.
9.7.2 - Manage cash
PCF ID: 10759
Definition: Taking care of all cash-related activities in the business. Manage and reconcile cash positions. Manage cash equivalents. Process and oversee electronic fund transfers. Develop cash flow forecasts. Manage cash flows. Produce cash management accounting transactions and reports. Manage and oversee banking relationships. Analyze, negotiate, resolve, and confirm bank fees.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.7.2.1 | Manage and reconcile cash positions | 10893 | 0 | N |
| 9.7.2.2 | Manage cash equivalents | 10894 | 0 | N |
| 9.7.2.3 | Process and oversee electronic fund transfers (EFTs) | 10895 | 0 | N |
| 9.7.2.4 | Develop cash flow forecasts | 10896 | 0 | N |
| 9.7.2.5 | Manage cash flows | 10897 | 0 | N |
| 9.7.2.6 | Produce cash management accounting transactions and reports | 10898 | 0 | N |
| 9.7.2.7 | Manage and oversee banking relationships | 10899 | 0 | N |
| 9.7.2.8 | Analyze, negotiate, resolve, and confirm bank fees | 10900 | 0 | N |
9.7.2.1 - Manage and reconcile cash positions
Definition: Correcting cash differences in the books of accounts. Make optimum utilization of funds available in the business. Check for differences to rectify.
9.7.2.2 - Manage cash equivalents
Definition: Taking care of all cash-related activities in the business. Utilize short-term assets that can be easily convertible into cash, such as marketable securities, commercial paper and short-term government bonds, and treasury bills.
9.7.2.3 - Process and oversee electronic fund transfers (EFTs)
Definition: Supervising all online transactions.
9.7.2.4 - Develop cash flow forecasts
Definition: Preparing forecasts for the cash generated or used by the organization.
9.7.2.5 - Manage cash flows
Definition: Delaying the outflow of funds as long as possible, but encourage the inflow of as fast as possible.
9.7.2.6 - Produce cash management accounting transactions and reports
Definition: Presenting reports on all cash-related activities. Collect and manage short-term investing activities. Prepare reports of all transactions done.
9.7.2.7 - Manage and oversee banking relationships
Definition: Maintaining and directing the course of relationships with banking partners.
9.7.2.8 - Analyze, negotiate, resolve, and confirm bank fees
Definition: Studying and finalizing bank fees for services provided by banks. Negotiate and finalize nominal fees that bank charges for various services, such as requesting a deposit slip or counter check or certifying papers.
9.7.3 - Manage in-house bank accounts
PCF ID: 10760
Definition: Managing financial services provided by an in-house bank structure in the corporation that is operating like a commercial bank.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.7.3.1 | Manage in-house bank accounts for subsidiaries | 10901 | 0 | N |
| 9.7.3.2 | Manage and facilitate inter-company borrowing transactions | 10902 | 0 | N |
| 9.7.3.3 | Manage centralized outgoing payments on behalf of subsidiaries | 10903 | 0 | N |
| 9.7.3.4 | Manage central incoming payments on behalf of subsidiaries | 10904 | 0 | N |
| 9.7.3.5 | Manage internal payments and netting transactions | 10905 | 0 | N |
| 9.7.3.6 | Calculate interest and fees for in-house bank accounts | 10906 | 0 | N |
| 9.7.3.7 | Provide account statements for in-house bank accounts | 10907 | 0 | N |
9.7.3.1 - Manage in-house bank accounts for subsidiaries
Definition: Maintaining subsidiaries' company accounts opened with bank inside the corporation. Manage different financial services provided by in-house bank structure for parent companies' subsidiaries or branches.
9.7.3.2 - Manage and facilitate inter-company borrowing transactions
Definition: Arranging loans for subsidiaries from in-house banks.
9.7.3.3 - Manage centralized outgoing payments on behalf of subsidiaries
Definition: Handling payments made for subsidiaries by parent company.
9.7.3.4 - Manage central incoming payments on behalf of subsidiaries
Definition: Handling payments received by parent company for subsidiaries.
9.7.3.5 - Manage internal payments and netting transactions
Definition: Taking care of all business outflows and recording as whole. Manage making all payments for the organization and its units or subsidiaries. Track in books of accounts of parent company.
9.7.3.6 - Calculate interest and fees for in-house bank accounts
Definition: Computing all expenses paid to and receivables collected over the organization's banking activity. Calculate all charges and receivables, towards interest, fees, and any other payments over its own bank accounts. Record transactions in the books of accounts.
9.7.3.7 - Provide account statements for in-house bank accounts
Definition: Facilitating account statements for all in-house banking activity.
9.7.4 - Manage debt and investment
PCF ID: 10761
Definition: Taking care of the organization's financial position. Manage its loans or debts from different sources and investments. Leverage the most profitable options to balance the financial position in the market.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.7.4.1 | Establish investment policy | 14079 | 0 | N |
| 9.7.4.2 | Manage financial intermediary relationships | 10908 | 0 | N |
| 9.7.4.3 | Manage liquidity | 10909 | 0 | N |
| 9.7.4.4 | Manage issuer exposure | 10910 | 0 | N |
| 9.7.4.5 | Process and oversee debt and investment transactions | 10911 | 0 | N |
| 9.7.4.6 | Process and oversee foreign currency transactions | 10912 | 0 | N |
| 9.7.4.7 | Produce debt and investment accounting transaction reports | 10913 | 0 | N |
| 9.7.4.8 | Process and oversee interest rate transactions | 14210 | 0 | N |
9.7.4.1 - Establish investment policy
Definition: Developing and instituting principles that the organization ill use in making investments.
9.7.4.2 - Manage financial intermediary relationships
Definition: Maintaining smooth relations with financial investment banks that help availing loans and services.
9.7.4.3 - Manage liquidity
Definition: Managing and maintaining enough liquidity in form of cash and cash equivalents in the business to meet urgent and timely requirements
9.7.4.4 - Manage issuer exposure
Definition: Managing the exposure incurred by the issuer for providing credit to the borrower.
9.7.4.5 - Process and oversee debt and investment transactions
Definition: Tracking loans taken and money invested in different options. Arrange and supervise loans from banks and individuals and investments in different available and profitable options.
9.7.4.6 - Process and oversee foreign currency transactions
Definition: Arranging and supervising foreign exchange rate changes to avoid loss on foreign-currency transactions.
9.7.4.7 - Produce debt and investment accounting transaction reports
Definition: Creating transactions report of loans and investments. Prepare and maintain records of loans and investment transactions.
9.7.4.8 - Process and oversee interest rate transactions
Definition: Supervising the interest paid or received by the organization. Arrange and supervise interest rate swap transactions to manage exposure to fluctuations in interest rates. Or attain a marginally lower rate of interest than could be gained through a swap.
9.7.5 - Monitor and execute risk and hedging transactions
PCF ID: 11208
Definition: Performing transactions that limit investment risk with the help of derivatives, such as options and futures contracts. Manage interest rates, foreign exchange, and exposure risks. Develop and execute hedging transactions. Evaluate and refine hedging positions. Produce hedge accounting transactions and reports. Monitor credit.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 9.7.5.1 | Develop risk management/hedging strategy | 12974 | 0 | N |
| 9.7.5.2 | Manage interest rate risk | 11209 | 4 | N |
| 9.7.5.3 | Manage foreign exchange risk | 11210 | 5 | N |
| 9.7.5.4 | Manage exposure risk | 11211 | 4 | N |
| 9.7.5.5 | Execute hedging transactions | 20137 | 5 | N |
| 9.7.5.6 | Produce hedge accounting transactions and reports | 11214 | 0 | N |
9.7.5.1 - Develop risk management/hedging strategy
Definition: Taking an investment position to offset exposure to certain risks. This may include purchasing opposite of the organization's position in the marketplace, using derivatives transactions, or futures contracts.
9.7.5.2 - Manage interest rate risk (4 tasks)
Definition: Handling risks arising from changes in the interest rate.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 9.7.5.2.1 | Manage interest rate market data | 19575 | Collecting and storing data that pertains to interest rate markets. |
| 9.7.5.2.2 | Determine interest rate exposure for all markets | 19576 | Identifying potential interest rate risks for all markets. |
| 9.7.5.2.3 | Determine interest rate hedge requirements in acco... | 19577 | Deciding the requirements on interest rate investments that are made by trading ... |
| 9.7.5.2.4 | Execute interest rate trades | 19578 | Performing trading on interest rates. |
9.7.5.3 - Manage foreign exchange risk (5 tasks)
Definition: Taking care of foreign-exchange risks.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 9.7.5.3.1 | Manage foreign exchange market data | 19579 | Handling and processing information about changes in foreign exchange rates. |
| 9.7.5.3.2 | Determine foreign exchange exposure for all curren... | 19580 | Establishing potential foreign exchange risks for all currencies. |
| 9.7.5.3.3 | Determine foreign exchange hedge requirements in a... | 19581 | Deciding the requirements on investments in foreign exchange made by trading in ... |
| 9.7.5.3.4 | Execute foreign exchange trades | 19582 | Executing all aspects for foreign exchange trade within foreign exchange market.... |
| 9.7.5.3.5 | Manage foreign exchange balance sheet risk | 19583 | Overseeing the foreign exchange balance sheet with an eye towards potential risk... |
9.7.5.4 - Manage exposure risk (4 tasks)
Definition: Taking care of exposure risks. Maintain financial investments in particular investments or a portfolios that could be risky for the organization.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 9.7.5.4.1 | Determine current customer exposures and limit exc... | 19584 | Establishing ongoing risks that the customers face, and the exceptions to exceed... |
| 9.7.5.4.2 | Resolve customer exposure limit violations | 19585 | Settling cases that involve violations of customer exposure limit. |
| 9.7.5.4.3 | Manage customer collateral | 19586 | Handling customer securities to recover loans that are not paid back. |
| 9.7.5.4.4 | Perform annual customer credit reviews | 19587 | Conducting reviews to assess customer credit on a yearly basis. Introduce change... |
9.7.5.5 - Execute hedging transactions (5 tasks)
Definition: Implementing hedging strategy in attempt to alleviate risk. This will include all options, depravities, and futures contracts agreed upon in Develop risk management/hedging strategy [12974].
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 9.7.5.5.1 | Measure physical positions | 19588 | Evaluating investments made in some market to offset the risks of investing in a... |
| 9.7.5.5.2 | Establish hedges | 19589 | Determining which hedge options to execute. |
| 9.7.5.5.3 | Unwind hedges | 19590 | Closing out a position or cashing in derivatives early. |
| 9.7.5.5.4 | Evaluate and refine hedging positions | 11213 | Examining options in the market for hedging investments. Select an option. |
| 9.7.5.5.5 | Monitor credit | 11215 | Revising credit reports periodically for accurateness and changes that could be ... |
9.7.5.6 - Produce hedge accounting transactions and reports
Definition: Preparing and documenting accounts and records of all hedging investment transactions to reduce risks due to change in markets.
9.7.6 - Manage financial fraud/dispute cases
PCF ID: 16958
Definition: Handling cases that involve financial fraud. Resolve disputes.
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 62 elements
| ID | Name | Definition |
|---|---|---|
| 9.7 | Manage treasury operations | Managing business's investments in trading in bonds, currencies, financial derivatives, etc. Manage ... |
| 9.7.1 | Manage treasury policies and procedures | Managing rules and regulations for investments in trading in bonds, currencies, financial derivative... |
| 9.7.1.1 | Establish scope and governance of treasu... | Selecting opportunities and the authoritative body for investments in trading in bonds, currencies, ... |
| 9.7.1.2 | Establish and publish treasury policies | Creating and providing investment regulations for the organization. Establish policies and procedure... |
| 9.7.1.3 | Develop treasury procedures | Making processes for investing. Create steps for investments in bonds, currencies, and financial der... |
| 9.7.1.4 | Monitor treasury procedures | Checking treasury processes in order to optimize company's liquidity, invest excess cash, and reduce... |
| 9.7.1.5 | Audit treasury procedures | Auditing the treasury function. |
| 9.7.1.6 | Revise treasury procedures | Reassessing all treasury procedures based on audit findings. |
| 9.7.1.7 | Develop and confirm internal controls fo... | Creating and managing the internal control systems for investments in bonds, currencies, and financi... |
| 9.7.1.8 | Define system security requirements | Describing the need of system security requirements for controlling access, reliability of informati... |
| 9.7.2 | Manage cash | Taking care of all cash-related activities in the business. Manage and reconcile cash positions. Man... |
| 9.7.2.1 | Manage and reconcile cash positions | Correcting cash differences in the books of accounts. Make optimum utilization of funds available in... |
| 9.7.2.2 | Manage cash equivalents | Taking care of all cash-related activities in the business. Utilize short-term assets that can be ea... |
| 9.7.2.3 | Process and oversee electronic fund tran... | Supervising all online transactions. |
| 9.7.2.4 | Develop cash flow forecasts | Preparing forecasts for the cash generated or used by the organization. |
| 9.7.2.5 | Manage cash flows | Delaying the outflow of funds as long as possible, but encourage the inflow of as fast as possible. |
| 9.7.2.6 | Produce cash management accounting trans... | Presenting reports on all cash-related activities. Collect and manage short-term investing activitie... |
| 9.7.2.7 | Manage and oversee banking relationships | Maintaining and directing the course of relationships with banking partners. |
| 9.7.2.8 | Analyze, negotiate, resolve, and confirm... | Studying and finalizing bank fees for services provided by banks. Negotiate and finalize nominal fee... |
| 9.7.3 | Manage in-house bank accounts | Managing financial services provided by an in-house bank structure in the corporation that is operat... |
| 9.7.3.1 | Manage in-house bank accounts for subsid... | Maintaining subsidiaries' company accounts opened with bank inside the corporation. Manage different... |
| 9.7.3.2 | Manage and facilitate inter-company borr... | Arranging loans for subsidiaries from in-house banks. |
| 9.7.3.3 | Manage centralized outgoing payments on ... | Handling payments made for subsidiaries by parent company. |
| 9.7.3.4 | Manage central incoming payments on beha... | Handling payments received by parent company for subsidiaries. |
| 9.7.3.5 | Manage internal payments and netting tra... | Taking care of all business outflows and recording as whole. Manage making all payments for the orga... |
| 9.7.3.6 | Calculate interest and fees for in-house... | Computing all expenses paid to and receivables collected over the organization's banking activity. C... |
| 9.7.3.7 | Provide account statements for in-house ... | Facilitating account statements for all in-house banking activity. |
| 9.7.4 | Manage debt and investment | Taking care of the organization's financial position. Manage its loans or debts from different sourc... |
| 9.7.4.1 | Establish investment policy | Developing and instituting principles that the organization ill use in making investments. |
| 9.7.4.2 | Manage financial intermediary relationsh... | Maintaining smooth relations with financial investment banks that help availing loans and services. |
| 9.7.4.3 | Manage liquidity | Managing and maintaining enough liquidity in form of cash and cash equivalents in the business to me... |
| 9.7.4.4 | Manage issuer exposure | Managing the exposure incurred by the issuer for providing credit to the borrower. |
| 9.7.4.5 | Process and oversee debt and investment ... | Tracking loans taken and money invested in different options. Arrange and supervise loans from banks... |
| 9.7.4.6 | Process and oversee foreign currency tra... | Arranging and supervising foreign exchange rate changes to avoid loss on foreign-currency transactio... |
| 9.7.4.7 | Produce debt and investment accounting t... | Creating transactions report of loans and investments. Prepare and maintain records of loans and inv... |
| 9.7.4.8 | Process and oversee interest rate transa... | Supervising the interest paid or received by the organization. Arrange and supervise interest rate s... |
| 9.7.5 | Monitor and execute risk and hedging tra... | Performing transactions that limit investment risk with the help of derivatives, such as options and... |
| 9.7.5.1 | Develop risk management/hedging strategy | Taking an investment position to offset exposure to certain risks. This may include purchasing oppos... |
| 9.7.5.2 | Manage interest rate risk | Handling risks arising from changes in the interest rate. |
| 9.7.5.2.1 | Manage interest rate market data | Collecting and storing data that pertains to interest rate markets. |
| 9.7.5.2.2 | Determine interest rate exposure for all... | Identifying potential interest rate risks for all markets. |
| 9.7.5.2.3 | Determine interest rate hedge requiremen... | Deciding the requirements on interest rate investments that are made by trading in futures or option... |
| 9.7.5.2.4 | Execute interest rate trades | Performing trading on interest rates. |
| 9.7.5.3 | Manage foreign exchange risk | Taking care of foreign-exchange risks. |
| 9.7.5.3.1 | Manage foreign exchange market data | Handling and processing information about changes in foreign exchange rates. |
| 9.7.5.3.2 | Determine foreign exchange exposure for ... | Establishing potential foreign exchange risks for all currencies. |
| 9.7.5.3.3 | Determine foreign exchange hedge require... | Deciding the requirements on investments in foreign exchange made by trading in futures or options m... |
| 9.7.5.3.4 | Execute foreign exchange trades | Executing all aspects for foreign exchange trade within foreign exchange market. This includes buyin... |
| 9.7.5.3.5 | Manage foreign exchange balance sheet ri... | Overseeing the foreign exchange balance sheet with an eye towards potential risk. Risks include chan... |
| 9.7.5.4 | Manage exposure risk | Taking care of exposure risks. Maintain financial investments in particular investments or a portfol... |
| 9.7.5.4.1 | Determine current customer exposures and... | Establishing ongoing risks that the customers face, and the exceptions to exceeded limits. |
| 9.7.5.4.2 | Resolve customer exposure limit violatio... | Settling cases that involve violations of customer exposure limit. |
| 9.7.5.4.3 | Manage customer collateral | Handling customer securities to recover loans that are not paid back. |
| 9.7.5.4.4 | Perform annual customer credit reviews | Conducting reviews to assess customer credit on a yearly basis. Introduce changes or make recommenda... |
| 9.7.5.5 | Execute hedging transactions | Implementing hedging strategy in attempt to alleviate risk. This will include all options, depraviti... |
| 9.7.5.5.1 | Measure physical positions | Evaluating investments made in some market to offset the risks of investing in a contrary or opposin... |
| 9.7.5.5.2 | Establish hedges | Determining which hedge options to execute. |
| 9.7.5.5.3 | Unwind hedges | Closing out a position or cashing in derivatives early. |
| 9.7.5.5.4 | Evaluate and refine hedging positions | Examining options in the market for hedging investments. Select an option. |
| 9.7.5.5.5 | Monitor credit | Revising credit reports periodically for accurateness and changes that could be suggestive of duplic... |
| 9.7.5.6 | Produce hedge accounting transactions an... | Preparing and documenting accounts and records of all hedging investment transactions to reduce risk... |
| 9.7.6 | Manage financial fraud/dispute cases | Handling cases that involve financial fraud. Resolve disputes. |
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