We evaluate treasury operations over a period to
- Assess compliance with existing guidelines
- Review effectiveness of treasury operations and hedging instruments
- Analyze suitability and comprehensiveness of current policy / management guidelines
Typically, companies with established treasuries engage with us to get an independent, expert reading on their treasury operations; while the engagement is sometimes part of the internal audit, our approach provides an analytic report which can serve multiple purposes
- Assure management including Audit \ Risk Management Committee, CFOs and treasury heads on process controls and regulatory compliance
- Benchmarking with treasury best practices
- Lay foundations for a comprehensive Risk Management System
- Identify specific areas of enhancement such as MIS, cash management, internal controls, etc.
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What is covered in a typical risk audit?
The scope of Risk Audit (which is not a financial audit) depends on the size of Treasury and client-specific requirements. As an example, for one of our clients we had covered the following and presented a report that was followed by management discussion.
- Review of risks with a focus on policy aspect of Treasury Management
- Transactional Risk
- Translational Risk
- Liquidity Risk
- Interest Rate Risk
- Review of operations with a focus on day-to-day treasury functioning
- FX & Money Market Dealings
- Hedging Activity
- Risk Monitoring
- Transfer Pricing
- Review of organizational issues
- Budgetary Process
- Resource Allocation (inter-divisional)
- Centralised Treasury / Group Treasury set-up
- Investment Process
- MIS
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