Finance and The transition in today’s financial markets, technological development, Treasury regulatory requirements and internal changes present complex challenges Management to corporate treasury functions. Specialists from KPMG firms around the globe can help keep you on track. Stay on top of things Today’s businesses are exposed to all kinds of constantly Given the pivotal role played by the treasury function in changing conditions and factors of influence, be they techni- corporate management and control, all steps to develop and cal, organizational, structural or regulatory. All these factors improve this function must make due provision for a wide impact the treasury function, compelling organizations to range of conditions and constraints. A holistic view is also respond without delay. The necessary adjustments are needed to coordinate treasury processes across divisional challenging. Yet they are also an opportunity to rethink and boundaries. optimize existing treasury processes and structures. In particular, due attention must be paid to the IT strategy, Continuous realignment requires an integrated approach accounting rules, tax considerations, legal norms, regulatory that takes into account functional requirements, their techno- provisions, controlling requirements and – by no means logical implementation, the design of suitable processes and least – personnel issues. This requires an appropriate and compliance with a raft of different rules and regulations. A broad knowledge in order to fully assess and understand the flexible organization and the ability to drive change from the implications of the wide range of treasury activities. Lastly, center are crucial success factors. there is usually also the need to manage budget restrictions and personnel bottlenecks. Many requirements – a single, integrated approach Wherever many different requirements have to be mastered, KPMG firms can help develop solutions that incorporate it is vital to model strategic topics in appropriate methods compliance and security considerations clients face. The and procedures. At the same time, efficient processes and more than 300 people at KPMG’s Global Financial and systems must be put in place to enable operational imple- Treasury Network work closely together, giving you access to mentation. Successful treasury departments combine both a high-performing team whose professional support can help aspects. you master challenges and achieve your goals. In line with the standard to deliver every project with quality, on time and To stay on top of so much complexity, KPMG specialists have on budget. drawn on their years of experience in financial and treasury management – to develop an integrated approach that covers these bases. This in turn helps them combine professional consulting with impressive implementation skills. Areas of consulting Implementation skills Financial risk management Strategy, organization and processes Cash and liquidity management Accounting and valuation Commodity and energy management IT systems Payment transactions Regulation, tax and law Your challenges and how KPMG firms can help Important topics for Financial risk management your company • Accurately and exhaustively inven- • Identifying risk drivers and setting up an early-warning system for torying the group’s financial risk risk items in the context of currency, interest, credit and default risk positions as the foundation for management effective risk management • Identifying your organization’s risk appetite and its risk-bearing capacity • Clear and efficient hedging strategies • Designing and testing of risk strategies and management models to minimize risks effectively while • Supporting the financial risk management organization and their optimizing transaction costs operational processes • Transparency about how financial • Building an accurate reporting system (a ‘risk management cockpit’) risks affect the balance sheet and tailored to the needs of its target groups profit and loss as a precondition for clear communication with the capital market Cash and liquidity management • Precise knowledge of current liqui dity • Designing and handling the technical implementation of integrated and projected cash flows liquidity planning and analysis • Identifying the relevant cash drivers • Establishing a system of value-based liquidity management and the levers to control them • Assessing the risk/return profile for capital investments and • Reducing the cost of internal payment developing tax optimization concepts transactions • Designing and implementing an in-house bank to manage • Improving interest income through intercompany payments cash pooling • Setting up tailor-made cash pooling structures and assisting with the selection of banks • Designing appropriate tax terms and charge rates for enterprise-wide cash management Commoditiy and energy management • Identifying and assessing enterprise- • Designing an exposure evaluation and group wide consolidation system wide risk exposure • Introducing ratios and scenarios for risk analysis • Optimizing suitable hedging strategies • Developing and optimizing hedging strategies, end-to-end processes and instruments and risk management organizations • Centralizing risk management and • Advising on the IT-related implementation such as market databases, establishing suitable governance inventory management systems and at-risk methods for commodity • Selecting and introducing commodity and energy risks trading and energy management • Advising on appropriate charge rates when implementing central systems purchasing and hedging strategies • Assessing and modeling hedge accounting measures Payment transactions • Ensuring security and compliance in • Performing payment transaction compliance checks payment transactions • Strategy consulting on payment transactions (business model, • Cutting costs with centralization, opportunity analysis, business case) automation and standardization • Designing and implementing solutions for internal and external • Integrating innovations and new payment transactions (payment/collection factories, shared service developments such as mobile centers) payment, eBAM and T WIST in the • Assisting with the selection of banks (RFPs, beauty contests) treasury function • Setting up technical connections (formats, connectivity, e -banking) Strategy, organization and processes Important topics for your company • Benchmarking and reviewing to ensure proper order, security and • Benchmarking the treasury function efficiency against your peer group and plotting • Consulting on M&A transactions: establishing new treasury a treasury road map organizations or integrating existing treasury units • Striking the right balance between • Aligning treasury organizations with current challenges and cost targets efficiency and compliance require- • Reengineering processes in light of strategic objectives and compliance ments requirements • Reorganizing and adjusting the • Supporting the production of guidelines and organizational design treasury function in line with new requirements (centralization, setup of a finance company, corporate transactions such as carve-outs or mergers) Accounting and valuation • Analyzing and optimizing market data supply • Implementing valuation methods in • Launching and validating valuation models for financial derivatives, line with market requirements stock option programs and complex financing structures • Applying accounting methods with • Advising on how to implement and optimize the recognition of financial secure audit trails, especially in the instruments in accordance with existing IAS, IFRS and HGB provisions, context of hedge accounting especially with regard to hedge accounting requirements • Accompanying the transition to • Designing, implementing and testing/supervising the transition to the IFRS 9 IFRS 9 provisions that will be applicable in future • Cutting costs by standardizing • Defining and establishing a reporting system to meet disclosure reporting requirements IT systems • Analyzing and designing system architectures and interfaces • Homogenizing system landscapes • Selecting, introducing and optimizing suitable treasury that feature numerous interfaces and management systems and reporting platforms manual activities • Assuring quality and performing tests/inspections during projects • Eliminating uncertainties about the to launch or improve IT systems future orientation of the treasury’s IT • Performing health checks for existing system environments with landscape regard to process efficiency, functionality, system operations, • Reducing the cost and effort involved costs and sustainability in treasury reporting while making it • Designing and optimizing the treasury reporting system more relevant to users • Applying new technologies such as cloud computing and big data in treasury contexts Regulation, tax and law • Providing tax advice on the design of the treasury organization and the • Launching legally independent treatment of financial transactions finance companies • Analyzing implications and advising on implementation of financial • Implementing the requirements of market regulations (EMIR, MiFID, REMIT) EMIR and REMIT • Performing the mandatory EMIR compliance audit stipulated by the • Assessing the impact of regulatory Securities Trading Act in Germany initiatives • Advising on supervisory implications for treasury organization • Minimizing tax risks arising from • Analyzing the impact of tax-related and supervisory initiatives (FATCA,