Treasury Operations Management

Treasury Operations

oversees the day-to-day management of a company’s working capital cash, forecast of cash receipts, disbursements, and expected closing balances.

Treasury Operations

this talks about the ability of a company to pay its bills and to have funds to support its operations and make investment in assets necessary to grow the business.

Treasurer

the person that has the responsibility to make sure that there is cash available to do things that the company has planned.

Risk Management Framework

• it outlines Treasury’s approach to enterprise risk management.

• aims to provide a standard for consistency in the language of risks.

Risk Management

• is an integral part of a good management practice and an essential element of good corporate governance.

• an overview of Treasury’s risks, our risk appetite and the way we choose to manage our risks and how it is integral to our decision making.

Treasury’s Leadership Team & Senior Management

• they are committed to developing an informed risk management culture, where risk management is not seen as a separate exercise rather, as an integral part of the objectives, business activities, and decisions.

Risk

is the effect of uncertainty on Treasury’s objectives.

Strategic Risks

• this risk relate directly to strategic planning and management processes across Treasury.

• this are those which could significantly impact on the achievement of our vision and strategic objectives.

Operational Risks

this risk generally require oversight by each group and associated divisional head, or by the relevant program or project steering committee.

Establishing the context / Context Establishment

Risk is the effect of uncertainty on Treasury’s objectives. Because of this, this risk management process is to identify and understand those objectives.

Identifying Risks

this risk management process identify and document all the key risks that may impact on Treasury’s ability to achieve its objectives.

Identify Causes of Risk

• it is important that the potential causes of each risk are identified and recorded.

• clue: part of Identifying Risks

Identify the Impact

• it is important to identify the potential impacts of a risk as part of determining the consequence, risk rating, and risk level.

• clue: part of Identifying Risks

Analyze the Risks

this risk management process determine risk severity where a risk matrix is used to identify the highest impact consequence with the likelihood of it happening.

Consequence Rating

this is determined from the consequence matrix, based on the highest potential adverse impact on Treasury and its stakeholders.

Likelihood Rating

once the risk’s consequence rating has been identified, this another rating is determined based on the corresponding likelihood that Treasury and its stakeholders could be affect by specific consequence.

Risk Level

is the outcome of the combination of consequence and likelihood using the risk matrix.

Inherent Risk Level

• is the level of risk before controls and their effectiveness are considered.

• clue: part of Risk Level.

Residual Risk Level

• is the level of risk after controls and their effectiveness are included in the assessment.

• clue: part of Risk Level.

ISO: 31000: 2018

it defined control as a measure that modifies risk and can include a process, policy, device, practice or automated system.

Preventative Controls

• these are proactive activities that deter risks from materializing at all.

• example: separation of duties, appropriate authorizations.

• clue: a control category.

Detective Controls

• alternatively are reactive and are activities that identify that a risk has materialized.

• example: spot checks, account reconciliations, inventory counts.

• clue: a control category.

Evaluating Risks

this risk management process is the result of risk analysis that are are subjected to risk evaluation to make decisions about whether further treatment is required.

Treating Risks / Risk Treatment

• is the activity of selecting and implementing appropriate treatment measures to modify and reduce the risk.

• this includes risk controls and treatments.

• clue: a risk management process.

Risk Avoidance

• to avoid a risk with a detrimental consequence by deciding not to proceed with the activity likely to create risk.

• clue: part of treatment options.

Changing the likelihood of the risk

• to enhance the likelihood of beneficial outcomes and reduce the likelihood of negative outcomes.

• clue: part of treatment options.

Changing the consequences

• to increase the gains and reduce the losses, this may include emergency response, business continuity plans, and disaster recovery plans.

• clue: part of treatment options.

Risk Transfer

• this may include taking appropriate insurances or the requirement for a warranty as part of a contract.

• clue: part of treatment options.

Risk Tolerance without further treatment

• this involves an explicit decision to accept the risk.

• clue: part of treatment options.

Key Risk Indicators (KRIs)

• these are indicators to alert the agency of their exposure or potential for a risk to occur.

• these are beneficial to determine the effectiveness of the treatment options selected by the Treasury.

• these are being determined by the Internal Audit and Risk Team.

Monitoring and Reviewing Risks

is risk management process where each division executive team member will review their operational risks and update the progress on the implementation of identified mitigation treatments at least annually.

Recording Risks

• treasury records its risks through use of of risk registers.

• clue: part of monitoring and reviewing risks.

Risk Register Review

• provides a view of all the risks that have been identified and assessed using the risk management process by various areas of business.

Communication and Consultation Plan

• the Treasury Intranet will include a Risk Compliance page that has been designed to inform staff of their risk and compliance responsibilities.

• clue: a risk management process.

Training Strategy

• the Internal Audit and Risk branch will facilitate training of all relevant managers and staff about the risk management processes and the online risk management system.

• clue: part of communication and consultation plan.