Treasury Management Policy

Treasury Management Policy
Every Institution should have a Treasury Management Policy (TMP) in place. It sets out the policy as to the management of an institution’s investment assets. Invariably the Governing Board delegates the responsibility of managing an institution’s assets on a day to day basis, within set parameters, to the Director of Finance.  An institutions’s TMP is one of the most important operational documents for management. Ideally a TMP should follow the CIPFA code of best practice and set out clearly the duties of the Director of Finance along with reporting procedures and frequency to the Finance and Resources Committee. The following are some of the points to consider:

1. What is your Cash Flow Profile? 

2. What Risks do you wish to work with? 
  •    Country Risks
  •    Corporate Governance
  •    Market liquidity
  •    Market volatility
  •    Interest rate risk
  •    Currency risk
  •    Duration/Term
3. How do you choose counter-parties?
    • Basis of selection/analysis
    • Risk tolerance/limits/concentration
    4. What debt instrument do you buy?
    • Asset type
    • Asset liquidity
    • Asset volatility
    Not understanding any ONE could leave you exposed

    Finalysis can “health check” your current treasury management policies to help identify gaps and improve processes
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