Internal control over the treasury function

Article Abstract:

Companies can arrange their treasury operations as either a service or costs center to minimize exposure and risk, or as a profit center to manage the company's risks to maximize financial gain within reasonable limits. In either case, the company will need to implement tight internal controls over the treasury function. The company board will have to delineate a policy establishing the financial risk that the treasury can take, the personnel responsible for implementing the policy and the limits of their responsibility, and the hedging techniques which are acceptable for the treasury to use. The treasurer plays the major role in seeing that the board's policy is implemented by establishing and maintaining communications with all parts of the firm that incur risks; establishing and maintaining business relationships with banks and financial institutions; defining the responsibilities of staff, system controls, and limits; and supervising the control of access to dealing and back office functions.

Management, Chief financial officers

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Corporate treasuries and the euro

Article Abstract:

The introduction of a single European currency presents an enormous challenge to the treasuries of European companies as well as of firms in other parts of the world that do business in Europe. Preparations for the coming of the euro will have to include changes in accounting systems, cash management, and settlement and banking arrangements. Financial risk management practices will also have to be altered in consideration of the new and different risks that may be posed by the euro. Another area where change is expected is corporate finance, especially capital market activities. The introduction of a single European currency is expected to generate efficiencies as a result of the creation of a larger and more liquid capital market. Corporate treasurers have to make preparations in these three areas.

Planning, Economic aspects, European Union, European Monetary System, Financial management

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Your banks, and how to chose them

Article Abstract:

Companies should use the services of a number of banks to insure competitive pricing for services. However, firms should avoid spreading business too thin by using no more than two domestic clearing banks and two primary international banks. Bank choice should be based on: creditworthiness; the size of clearing operations; the match in organizational structure and size between a bank and a business; and the quality of bank systems. Domestic bank choices should be based on: the requirements of a territory; a bank's ability to deliver services required; and a bank's ability to issue debt securities. An international bank's operations should: match the geographic spread of a company's operations; have a sufficient capital base, and offer local financial expertise.

Banking industry, Analysis

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