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Treasury Audit Training
Treasury Audit Training Course, (Two Days)
This treasury audit training course is designed for an Audit department undertaking a Treasury review. It is designed to focus on the business conducted in a treasury, the risks that can be generated and the appropriate controls and structures that should be in place to assist in the efficient use of resources and the prevention of unexpected losses. The workshop will cover:
- Identification and recognition of risk in Treasury
- Understanding how and why failures have arisen in the industry
- The role that controls and reports have in reducing risk
- Consideration of what constitutes "best practice"
- Establishing appropriate parameters for an audit of a Treasury department
Training will be in a workshop format. This will include a mixture of presentation and case study material. This treasury audit training course is designed for up to ten staff.
Below is a summary of the workshop content. The content of each day has been placed in a logical sequence and addresses the key topics.
Day One
Introduction to workshop
- Objectives
- Format
The role of Treasury
- Business models
- Management objectives
- Role of ALCO
- Business plan
- Risk culture & risk awareness
Performance measurements
- P&L, benchmarking, transfer pricing
- Conflicts
Reporting lines
- Clarity/documentation
- Segregation of duties
- Mandates
Function of risk management
- Resources
- Independence
Market Risk
- What it is & why we measure it
- Gap reporting
- Duration
- Basis point value
- Value at risk
- Back testing
- Stress testing
- Earnings at risk
Liquidity risk
- What it is, why we measure it
- Liquid assets, ratios, cash flow report
- Funding sources
Credit risk
- What it is, how it occurs
- Credit spreads
Day Two
Operational risk
- Overview
Risk reporting
- Timeliness/availability
- Understanding
- Validity of data
- Accuracy
- Reporting of excesses and action
Limit structures
- What is an appropriate limit structure?
- Do they capture all the risks?
Operational issues
- Confirmations
- Sampling
- Trade data capture
- Escalation processes
New products
- What should be completed before dealing
Complex products
- Pricing models
- Validation & testing
Documentation
- Record keeping
- Use of standard master agreements
- External legal opinions
Disaster recovery
- How should it work?
How banks have lost money
- Selected examples
End of workshop & review
Related Documents
Quick Guides > Rogue Trading 
In March 2008 the FSA issued Market Watch No. 25. In this report the FSA highlights the measures firms should consider when reviewing systems and controls used to protect against the risk of a rogue trader. Overall the newsletter is helpful and the FSA correctly identifies and comments on a number of issues. Whilst not formal guidance the newsletter from Markets Division contains a number of surprising comments that if followed could lead to problems with the regulator.
Regulation > Consultation Paper 09/17: A Specialist Sourcebook for Building Societies June 2009
1st August 2009
The general thrust of the CP is that Societies must prove that they have both the management and the systems capable of effectively dealing with the risks they face. This is part of the enhanced supervisory approach now adopted by the FSA. It states that systems and controls must match the level of complexity in a firm's business model. The FSA will adopt a more interventionist approach in order to ensure this is the case. The proposal is that building societies and the regulator will determine whether the risk management policies adopted are appropriate. Where they are not the Society can either simplify its business or improve its risk management. The FSA also intends to limit societies diversifying their business without a full assessment of capital adequacy. The FSA has considered applying similar CP 17 guidance to the banking sector but has decided on account of the "lack of homogeneity" that this would not be practical and in their case a firm-by-firm approach is more appropriate. The CP addresses treasury and lending. It contains five approaches to treasury management, three areas of treasury guidance and three approaches to lending. Consultation closes on 5th September 2009 with implementation due in early 2010 when a new Building Societies Sourcebook (BSOCS) will replace IPRU-BSOC.
Model Design and Audit
Training Courses > Introduction to Treasury 
Training Courses > An Introduction to Treasury 2020
Treasury Workshop 19th - 20th April 2016 
22nd January 2016