In addition to risk management consulting, GTA's practice is focused on improving group and ocal unit treasury management. We do this by implementing best practices and cross-border centralization techniques appropriate to the scale and circumstances of each client.
Improving Local Treasuries
To identify centralized treasury opportunities and local operational weaknesses, we have developed a web-based local treasury benchmarking process. From start to finish, it takes only seven weeks, avoiding expensive and time-consuming travel to the units.
The resulting evidence of poor local unit treasury practices and quantified savings from centralization are usually persuasive in convincing both senior management and the local controllers of the need for change.
In a phased approach, with each phase building on the previous one, we:
- Develop a customized web questionnaire from our library of questions on cash management, FX trading, borrowings, investments, interco and external billing, A/R and A/P practices, and internal controls. This includes transaction volumes, fees and banking cost information.
- Prepare reports highlighting local unit treasury weaknesses: inadequate cash positioning, uncompetitive rates, undue reliance on overdrafts and overnight investments, etc. Money that is being left on the table is quantified, and corrective measures can quickly be taken.
- Recommend, on a cost/benefit basis, these kinds of alternatives: in-country and cross-border pooling, in-house banking, payment factories, interco trade netting, foreign currency collection centers, outsourcing, and centralized FX hedging.
- Write RFPs, evaluate bids and assist in implementation, as requested, for accepted recommendations.
Improving Group Treasury
Most treasury processes and structures have developed incrementally over time between headcount reductions, implementing the euro, Y2K, and FAS 133 and the many crises du jour. In these situations, our treasury reviews and treasury structuring projects can quickly identify outmoded or outgrown practices in global treasury management, treasury vehicles (or the lack thereof), automation, and treasury information reporting and analysis.
The resulting recommendations may involve increased staffing, outsourcing, new organizational structures, improved treasury and accounting practices, expanded information reporting and analysis, and new systems, including system selection and implementation.
Ad Hoc Consulting
For many of our client treasuries, we are a knowledgeable, independent sounding board to help them think through such issues as bank relationship management, tactical FX hedging strategies, funding strategies, deal structures, and managing their auditors. We do this on an hourly basis, with no monthly retainer fee.