In our last post, we explored why treasury operating model reviews are vital. Treasury teams often struggle with fragmented systems, high manual workloads, and rising costs, all of which hinder efficiency and risk management.
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Treasury Review Process
Our 7-step framework is designed to simplify processes, reduce risks, and improve daily efficiency, setting a strong foundation for modernization. Here’s how it works:
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- Service Capabilities
- Risk Register
- Risk Assessment
- Visual Aids
- Mitigation Optimization
- Capacity Benchmarking
- Alternative Solution Options
Service Capabilities
First, we define the organization’s service model, structuring capabilities into three levels to clarify roles and reduce confusion:
- Level 1: Foundational Capability – Identifies core service areas essential for treasury operations.
- Level 2: Capability Group – Combines related service areas for better efficiency and management.
- Level 3: Business Capability – Represents specialized functions that provide a competitive edge.
This foundation aligns services with business goals, leading naturally to the next area—Risk Assessment
Risk Assessment
Our best practice risk assessment framework is essential to managing vulnerabilities. Using AI-powered visuals and data analytics, we can clearly identify and prioritize risks:
- Identify and Prioritize Risks: Flag exposures by likelihood and impact.
- Visual Summaries: AI-generated charts highlight areas needing attention.
- Stakeholder Collaboration: Departmental collaboration ensures high-risk areas are managed effectively.
With a solid risk assessment in place, we use AI Tools and Metrics to provide further insights and efficiencies.
AI Tools and Metrics
To conduct a thorough risk assessment, we utilize a range of tools and metrics that offer a comprehensive, data-driven perspective
- Risk Register: Tracks and prioritizes risks.
- Visual Summaries: Offers quick reference points for decision-making.
- Productivity Metrics: Identifies automation opportunities.
- Benchmarking: Compares performance to industry standards.
These tools enrich our review, setting priorities aligned with strategic goals and leading us into Outcomes.
Outcomes
Following this 7-step approach optimizes operations, reduces risks, and enhances efficiency. This structured review prepares treasury teams for future growth. In our next post, we’ll look at real-world examples of treasury transformation.