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.

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.

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

Review of treasury may also focus on specific areas such as use of derivatives or cash management, as required by the client company.

Email us at advisory@mecklai.com for more details.