Treasury Policy

An important guideline for the safe handling of finances

Functioning processes must be defined. There are many reasons for this: security, efficiency and continuity. Treasury processes in particular are characterized by a high degree of complexity, as they are usually the central link between customers - banks - accounting - management - employees - authorities. A well-structured treasury policy should therefore take due account of the following sections and looks as follows when introduced by us:

1. Treasury manual
This is the framework of the entire policy. It can be thought of as an extended book cover that sets out the basic issues relating to the treasury department. It regulates processes, responsibilities and reporting.

1.1 Overview of the Group Treasury function

1.1.1 General principles

1.1.2 Treasury function and responsibilities

1.1.3 The position of Treasury within the Group

1.2 Policies and guidelines based on the Group Treasury strategy

1.2.1 Treasury Master Agreement

1.2.2 Corporate Finance (possibly incl. Capital Management)

1.2.3 FX and Risk Management

1.2.4 Cash management

1.3 Valuation, reporting and controlling

1.3.1 Liquidity reserves

1.3.2 Liquidity and financial reporting

1.3.3 Exception reporting

The core of a professional and meaningful treasury policy can be found in the second chapter. The individual areas are dealt with separately, firstly because not all groups have the same requirements for a treasury policy and secondly because this ensures the greatest possible flexibility if individual areas need to be revised. The excerpts available for download below give an idea of how the structure could be organized. 

We are always available for a detailed description and help with customization. Order your comprehensive treasury policy templates here!

2. Self-contained policies, part of the overall treasury policy

2.1 Treasury Master Agreement
This section regulates all legal matters. It is the basis for all activities, be it clearing transactions, loan management, cash pooling, powers of attorney with banks, procedures in the event of late payment, etc.

2.2 Corporate Finance
Defines and regulates all tasks and responsibilities for banking relationships, financing matters and financial competencies.

2.3 FX and Risk Management
Explains, defines and provides guidance on the processes for managing and hedging operational risks in general and currency and interest rate risks in particular.

2.4 Cash Management
This section is responsible for the heart of every treasury, cash management. This is where all cash flows come together, are sorted, coordinated, controlled and allocated in the best possible way with the support of treasury practices such as cash pooling, group netting, account management, investments, etc.

Here you can download all the documents mentioned above as a template

Contact us, we will be happy to show you what is possible for your company!