Treasury Risk Uncovered

Treasury Risk Assessment & Recommendations

This retail bank used its treasury to manage interest rate and liquidity risk. The bank's management requested a detailed assessment of the structure, risk and strategy of the treasury together with recommendations for improvements.

This addressed the management structure, market risk, liquidity risk and management, credit exposures and risk, operational risks, instrument use (in particular derivatives), hedging methodologies, regulatory risks, risk reporting, transaction pricing, counterparty relationships and personnel issues.

There were 48 detailed recommendations. As a result of this report an action plan was established in order to undertake the necessary changes and improvements.

Priority was given to risk management, risk reporting, counterparty relationships, legal documentation and senior management reporting.