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Mitigating Treasury Risk

This was a successful client who had experienced remarkable growth in a short period of time. However, as their success continued, they found themselves facing a problem. Their treasury and treasury risks had been overlooked and the resources available to manage them were limited. This put them at risk, not only because they were dealing with clients' money, but also because their reputational and regulatory risks had increased over time.

The risks involved with managing large amounts of money cannot be ignored. A company that places a small amount of money on deposit takes some risk, but when the amount multiplies several hundred-fold, the magnitude and nature of the risks involved need to be re-evaluated. This goes beyond credit and extends into liquidity, market, and operational risks, as well as the entire governance process that is in place. Ignoring these risks is tempting, but failure to address them could lead to costly consequences if something goes wrong.

Thankfully, Barbican Consulting had a solution. They proposed a full report on the workings of the client's treasury, the risks and governance processes, and a board presentation. The report would address credit risk, liquidity risk, market risk, foreign exchange risk, operational risk, development plans, and governance, with recommendations for improvement. The report would be undertaken by an independent expert and delivered within an agreed timescale, allowing the client to carry out the recommendations at their own pace and according to their agenda.

Working closely with the client, Barbican Consulting delivered the report within two months, meeting all the client's requirements. The report contained over seventy recommendations for improvement, categorized by severity and an appropriate timescale for resolution.

Thanks to the thorough analysis provided by Barbican Consulting, the client was able to identify potential risks and implement changes to mitigate them. By addressing the risks in a timely and effective manner, the client was able to maintain their success and reputation in the market.

In today's ever-changing business landscape, it's essential to remain vigilant and proactive in identifying and mitigating risks. Barbican Consulting provides the expertise and guidance necessary to help clients achieve their goals and stay ahead of the competition.

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