In the first two posts of this trilogy, we looked at the types of risk that financial firms face, and our approach to identifying and assessing risks.
In this third and final post, we move on to describe our approach to managing the most important risks facing your Treasury operating model.
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1. Introducing the Prodktr Treasury Review Service
Our process for reviewing and mitigating risks is called our Treasury Review Service (TRS).
During a TRS review, we analyse your operating model services, processes, and underlying systems to find a path to increased efficiency and reduced cost.
Using the TRS is an opportunity for you to redefine services, simplify operating models, review your productivity against the rest of your industry and plan for future growth. With the TRS, we can give you the evidence you need to simplify and upgrade your internal processes to become more competitive.
2. TRS Benefits
- Reduce the high costs of treasury and risk, front-to-back operating models (such as technology, personnel and so on)
- Simplify and streamline your processes to make them more transparent and efficient
- Reduce trading and operating costs to offset the effect of lower revenues
- Accelerate the adoption of AI and digital ledger technology (DLT) and new instruments
- A standard service operating framework to be used as a common practice throughout the organisation
- Monetise your operation and infrastructure by offering it to external third parties, potentially turning it into a new profit centre for your firm.
3. How the TRS works, step by step
The TRS breaks down into three main phases.
First, we carry out our initial assessment of your front-to-back technology operating model, mapping your infrastructure in detail. Based on our findings, we formulate a problem statement that defines what needs to change.
In the second stage, we propose solution options and guide you on the best way forward. The choice is usually between optimising your existing setup or choosing a new provider and/or platform.
As part of this phase, we carry out a cost-benefit analysis and benchmarking, to get a clear picture of where you are now. Leveraging our custom owned Treasury framework, We develop a detailed business case for transformation and create a design for your future operating model, so you can see exactly where you are headed. All these details are packaged into a final Treasury Operating Review Report with final recommendation for C level review and support.
The final stage is the delivery of the road map. This includes planning and managing the transition to your new operating model, the governance of the resulting change program and overseeing all the commercial and contractual arrangements that are involved.
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Conclusion
In this risk trilogy, we’ve connected the dots between understanding risks, assessing them, and now effectively managing them. Prodktr’s Treasury Review Service help firms redefine treasury services, modernize operating models, and plan for growth. By partnering with us, you can enhance visibility, control, and efficiency in your treasury operations.
Originally written in 2022, it has been updated with the most current insights.
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Further Readings:
Deloitte (2023). Geopolitical Risk Management in Financial Services
McKinsey (2020). The Future of Operational Risk Management in Financial Services
Prodktr (2024) Types of Risks
Prodktr (2024) Identify & Assess Risks
Prodktr (2023) Treasury Framework
Prodktr, 2023. Treasury Operating Model Review Useful Secrets
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Prodktr is a Treasury advisory service provider. Contact Prodktr today to start your journey towards streamlined operations and enhanced data.