Every business needs to effectively manage their treasury to succeed. Using a solid gestion de la trésorie strategy can guarantee cash flow and liquidity even through tough times. This strategy can be created by understanding and managing the risks associated with this important business process. It is necessary to make an internal controls framework which addresses vulnerabilities and boosts processes to help in limiting overall exposure. While building this framework for mitigating treasury management risks, consider the following:
Because your treasury department controls the bank account of your organization, it should be the last line of defense against any fraudulent activity. Try to limit the accessibility of your bank accounts by authorizing specific people to make transfers to and from these accounts. Also, you must have processes for detecting fraudulent invoices or payment scams.
Double-Checking Treasury Data and Recommendations
Your treasury management team provides data that you can use for making major business decisions. If they give you inaccurate or insufficient information, your business can be hurt. Create a process for double-checking the recommendations and data this department is producing to avoid any problems down the road.
Setting Trading Limits
Identify the right people you can authorize to make trades and when. Also, think about having a four-eye rule in place that requires the review of a possible trade before completion. The review should be done by at least two people.
Dividing duties involved in trading and other activities for giving checks and balances will ensure the accuracy of outcomes. Letting one person handles all the tasks will increase the risk of overall damage when one task is not done properly as expected.
Creating an Implementation Plan
Before you execute any business strategy, you need to have a plan in place that will lead you to the right path. Ensure you have an implementation plan for policies in daily operations and follow through.
Reducing and Preventing Mistakes
A treatment management team has to deal with a high volume of financial transactions. This makes it possible for them to commit mistakes along the way. Ensure you have a process in place for discovering any errors, correcting mistakes, and eliminating any incorrect data from your system.
Carrying out an internal and external audit on a regular basis helps in determining the processes that work and those that you have to strengthen.