Treasury Audit Training

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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

Model Design and Audit

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.

Training Courses > An Introduction to Treasury 2017

Training Courses > Introduction to Treasury

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.

Treasury Workshop 19th - 20th April 2016

22nd January 2016