MUHAMMAD ALI JINNAH UNIVERSITY

Term Report On TREASURY MANAGEMENT OF ERNST & YOUNG

Performance-driven solutions

Designed By: S. Taha A. Zaidi Student ID: FA09-MB-0166 Submitted to: Sir Irfan Ahmed

Summary
Organization and governance Performance assessments: towards best practice Financial risk management Cash and liquidity management Corporate funding Financial instruments valuation and accounting Treasury technology Assurance and control Contacts

5 6 8 9 10 11 12 13 14

Strategy

Assurance & control Organization & governance

The evolving treasury function

Performance assessments

Quality assurance
Treasury management

Treasury technology

Planning

Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

A challenging context
The demands on corporate treasury departments are subject to Implementatio constant change with, for instance, an increasing requirement of shareholders for companies to demonstrate how financial n resources and financial risks are managed. These requirements for increased transparency and control have led to a global trend toward centralization of treasury activities. In addition, treasurers need to cope with a growing complexity of financial instruments, ever more volatile financial markets and the introduction of new regulations and accounting practices. For treasury, this means that you need to update continuously your know-how, to ensure reduction of costs, minimize volatility, bring value to the company and ensure short and expansive lines of communication.

Topics

Our primary Treasury services cover the following areas:

Treasury organization & governance Treasury performance assessments Financial risk management, (interest, FX, credit and commodity

risks) Cash and liquidity management including cash forecasting Corporate funding and capital management Treasury technology, including Treasury Management System TMS selection and implementation Valuation and accounting for financial instruments (IFRS and local GAAP) Audit, Quality assurance & compliance

Your goals our mission

We will help you to define clearly the responsibilities of treasury and to engage further in supporting the business. We have the required know-how and expertise available for all the important topics of treasury (for example, cash and liquidity management, financial risk management, accounting, system utilization). In addition, we will confirm whether the internal control environment of your treasury is in accordance with statutory requirements and market practices. More than ever, it is important to adopt an integrated holistic approach instead of pursuing temporary solutions for individual issues.

Your benefits

Integrated service offering Powerful, customized approaches Rapid, sustainable knowledge transfer Solid process embedment Holistic perspective

Profit from Ernst & Youngs global Treasury network and multinational team

Which service offers you the competitive advantage? Our offer

Self Assessment using our proven analytical methodology Analysis of potential improvements, based on your current

The growing demands on the treasury function are driven to a

large extent by the current market situation. They are associated with a heightened awareness of management for operational and financial risks, focused on the following themes: situation Individual approaches to address any weaknesses identified Quick check of accounting policies and hedge relationships

Improvement of cash-forecasting quality and methodologies for

Make an appointment and talk to us. We are happy to inform in detail about how we can help you drive your treasury forward. liquidity management and financial planning Management of derivatives, market price and counterparty risks Accounting and valuation of all treasury transactions In parallel, there is continual pressure to improve the efficiency of, and control over, treasury. Ernst & Young provides you with a portfolio of services that cover the full scope of a treasury function. We have a knowledgeable team, with the right combination of treasury skills and experience to support your treasury through all types of challenges.
Ernst & Young Treasury management 3

Strategy
Assurance & control Organization & governance

Organization and governance

Performance assessments

Qualityity assurance
management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury management
Valuation & accounting Financial risk

Choosing the right organization

With the increasing importance of treasury, companies must choose a robust and dynamic organizational structure. In Implementati particular, a well thought-out strategic, on forward-looking approach is essential. This begins with choosing the right operating model. In order to do this, the scope of activities that are covered by the treasury Department and the degree of centralization must be determined. Does treasury execute only the most necessary activities such as liquidity management or if treasury is determined a core organizational process does it cover the full range of services? This must be taken into account when designing the optimal hierarchical structure of the central and/or local treasury functions. We accompany you along the whole process: from definition of objectives to implementing a new or revised organization of the governance structure and underlying processes. Current state analysis

Analyzing the current state compared with leading practices and established control requirements

Assessing the systems and methodologies, focused on identification of potential improvements Future state development Defining the target organization given the objectives, identifying leading practices that are both fit for purpose and focused on value optimization

Defining, updating or standardizing policies, processes and procedures for: Banking network (banking selection and rationalization) Cash management (pooling/ netting) Short- and medium-term financing (e.g., factoring and securitization) Financial risk management (strategy optimization) Treasury accounting Implementation support

Project planning and management (objectives, resources, milestones) Identifying and implementing quick wins Assist with planning and implementation of a rollout of the new global structure Additional organizational knowledge through workshops covering operations, accounting, finance, legal, tax services and information systems Interim staffing of operational or control functions (when allowed) Realignment of the treasury to meet

Your benefits

Reorganization and transformation

current and future economic and regulatory requirements Realization of potential synergies and efficiencies by optimizing treasury

processes Due to changing circumstances, e.g, transactions such as mergers and acquisitions, carve outs, spin offs and as part of reorganization projects such as enterprise resource planning (ERP) implementation and centralization of treasury functionality, a reformulation of the organizational structure, processes and financial risk management is needed.

Defining and adjustment of (key)

Our services
Using a gap analysis of your current treasury structures compared with the requirements according to your strategic objectives, we make recommendations for choosing the right organization and optimizing the treasury function. This leads to, inter alia, improved communication and reporting processes and identifies process duplication and redundancies. management indicators Selecting and implementing TMS(s) Defining roles and responsibilities, job descriptions and provide assistance towards recruitment and/or secondment placement
Ernst & Young Treasury management 4

Strategy
Assurance & control Organization & governance

Performance assessments: towards best practice

Qualityity assurance Planning
Treasury technology

Treasury management
Performance assessments Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Our performance assessment can be the first step towards developing a risk-and profit-oriented, comprehensive view of your treasury activities. Based on our treasury experience and peer comparison in the market, we identify potential points for improvement and further development potential. The thorough investigation of structures and processes and their comparison with the legal framework and market practices are the foundation of our treasury advisorys holistic approach.

Implementation

Current state analysis

Our services

Ernst & Young has developed a specific framework for assessing functional performance of a treasury department, which is based on our global experience with treasury organizations, regular treasury projects and client surveys. In addition, external benchmarks and guidelines are taken into account, for example, from local Associations of Corporate Treasury, IFRS7 and the local Corporate Governance Code. The many facets of corporate treasury require a practical and pragmatic interpretation of relevant regulations, which need to be considered in the broader context of the complexity and risks of the company. Taking into account external market trends, as well as our extensive industry experience, we have developed a compact corporate treasury checklist that allows a comprehensive benchmarking against leading practices and provides a quick insight into potential improvements. In addition, the maturity of the treasury function is assessed compared with wellestablished, leading treasury organizations, while taking into account the firm-specific characteristics.

Treasury function maturity

Key factors Policies and procedures Governance Basics
Informal policies and procedures not documented.

Developing
High level policy statements setting out central treasury activities. Limited documented guidance on local treasury activities and incomplete procedure documentation.

Established
Well documented group treasury policy and procedures. Limited policies and procedures on treasury activities in local business units.

Leading class

Comprehensive policy document for group treasury and the business units. Treasurer or group FD responsible for all aspects of treasury. No compliance monitoring or internal audits. Regular reporting to the board on treasury activities. Internal audits not performed by treasury experts. Minimal compliance reporting. Treasury compliance regularly monitored and reported to the board and/or the relevant treasury/finance committees. Regular internal audits using external treasury sprecialists. Treasury activities monitored by and treasury strategy approved by Board or board subcommittee. Regular internal audits by treasury experts with treasury self assessments.

Structure

Decentralised treasury structure with local businesses responsible for managing their own treasury activities. Little/no interaction between Group Treasury and Group companies. Centrally managed funding with businesses

responsible for managing local treasury activities. Some interaction between Group Treasury and Group companies. Centralised treasury with clear guidelines governing any local treasury operations. Communication between group treasury and group companies on an informal basis. Centralised treasury with all treasury activity managed by group treasury (as far as possible). Regular dialogue between group treasury and business units.

People and skills

Treasury activities are performed by personnel with little or not treasury experience. Treasury usually performed by finance staff on part time basis. Dedicated treasurer with inexperienced assistant(s) and support staff. Experienced and established team with appropriate professional qualifications/ qualified by experience in key positions. Good knowledge of all aspects of treasury and of the companys business. Experienced and qualified professionals in all key positions within treasury. Good knowledge of treasury activities and experience of working in a multinational treasury function.

Ernst & Young Treasury management

The main themes covered in a Treasury Assessment are:

Your benefits

Treasury organization, strategy and systems Integration into the companys strategy, rules and responsibilities Management of financial risks (e.g., interest rate, currency and

commodity risks) Liquidity and cash management Internal control Performance measurement Reporting Based on the analysis, you receive an assessment of your treasury organization compared with leading practices, with individual recommendations for potential further improvements and significant risks. This assessment enables you to determine priorities and if applicable define an action plan, for implementation

Company XYZ: Treasury management Process Efficiency Maturity Assessment Dashboard Weighted scores Maturity profile Weighted
Dimensions
Operational strategy Process & policy People & organization Technology & data Performance management Vertical maturity index Vertical maturity index (%)

Current state 2.0 3.0 2.0 3.5 3.0 3.0 60.0% Future state 3.0 4.0 3.5 4.0 3.0 3.5 70.0% Leading practice 5.0 5.0 5.0 5.0 5.0 5.0 100.0%

Raw Equal dimensions Maturity profile Raw Equal dimensions

Dimensions
Operational strategy Process & policy People & organization Technology & data Performance management Vertical maturity index Vertical maturity index (%)

Current state 2.5 3.0 2.0 4.0 3.0 3.0 60.0% Future state 3.0 4.0 3.0 4.5 3.5 3.5 70.0% Leading practice 5.0 5.0 5.0 5.0 5.0 5.0 100.0%

Raw scores Equal questions Maturity profile Raw Equal questions

Dimensions
Operational strategy Process & policy People & organization Technology & data Performance management Vertical maturity index Vertical maturity index (%)

Current

state 3.5 3.0 2.0 4.0 3.0 3.5 70.0% Future state 4.0 4.0 3.0 4.5 3.5 4.0 80.0% Leading practice 5.0 5.0 5.0 5.0 5.0 5.0 100.0%

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Strategy
Assurance & control Organization & governance

Financial risk management

Performance assessments

Qualityity assurance
management
Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury

Financial risk management

Strong market volatility, constant evolution of the international accounting standards Implementation and increasing importance of financial reporting prompt companies to improve regularly their financial risk knowledge and to optimize its management. In this environment identification of risk drivers and exposures, definition of risk management policy and implementation of appropriate management tools, communication lines and reporting are the key means to enable effective financial risk management.

Our services
Based on our extensive experience, we provide advice and support for all elements of financial risk management, for example:

Identifying the main sources of financial

Treasury and financial derivatives

In order to control financial risks, most treasury departments, inter alia, use financial derivatives. The hedging strategies need to be aligned with the overall objectives of the company, while ensuring that valuation methods for derivatives do not lead to unwanted volatility of profits. In addition, a consistent separation of functions in risk management and appropriate monitoring systems are needed. risk exposure and measuring the companys natural hedging effectiveness Co-developing a strategy for financial risk management within the groups financial supply chain Development and validation of models to quantify and monitor financial risks, including VaR, EaR, Gap and scenario analysis Integration of more complex financial products into your information systems Implementing appropriate (hedge) accounting to reflect adequately the (economic) exposures, including hedge effectiveness testing Develop appropriate reporting to enable effective monitoring and steering of financial risks by management The financial crisis has demonstrated that methods that seem to work in normal circumstances may fail in the case of major calamities. For example, a significant interaction between market prices, collateral demand, liquidity and credit quality occurred. Therefore, the creation of an overall corporate financial risk framework is a central aspect of our Treasury Advisory approach.

Your benefits
We will assist in further developing and strengthening the understanding of the financial risk management strategies to

help you best achieve your business goals, both economically and in terms of financial reporting. This includes an adequate organizational structure and infrastructure (policies, controls, processes, models, etc.) as well as the development of methods and processes for quantifying, assessing and monitoring financial risks. Together we will develop scenarios and stress-testing methods, including emergency plans that are tailored to your companys risk profile and classification so that you are fully prepared to handle crisis situations.

Major risks

The key financial risks that treasury needs to identify, quantify, manage and monitor are liquidity, FX, interest rate and counterparty risks. An increasing number of companies are also active in commodity or energy risk management.
Identity
current XYZ risk management framework

Diagnose

the current state of XYZ FX risk management framework

Design

management framework on XYZs results

Deliver

recommendations to implement enhanced XYZ risk management framework

Sustain

Analyze and comment on

Understand and validate

Analyze impact of FX risk

Formulate

Post implementation analysis ans sustainable improvement plan Understand XYZ business Assess and validate the

structure, economic model and transactional flows Conduct FR risk exposure analysis of XYZ FX porfolio Analyze current XYZ FX risk management policy and hedging framework Analyze business planning schedule and cycle vs. FX risk forecast schedule and cycle and comment on potential improvement

current state of XYZ FX risk management framework Define criteria for its evaluation and understand XYZ desired future state Assess accounting schemes and impact of FX risk management framework on XYZs result for both statutory and management reporting Identify Benchmark competitors (MNC) in terms of FX risk management

Set FX management

Key Tasks
Analyze impact on:

objectives considering linkage with shareholders value Define XYZs FX risk tolerance taking into account XYZs business dynamics

Activities
framework Formulate recommendations of potential benefits of using or not using hedge accounting SAP ECC 6.0 and SAP-FSCM SOX control framework

Design/Enhance XYZs FX risk management policy and hedging

Develop the approach

and requirements for the selected improvements as stated in the new FX risk management policy Design/Enhance the FX

risk management manual Validate the newly designed FX risk management framework Analyze impact and redesign of FX risk management framework on stratutory accounting, management reporting and SOX control framework Support on FX risk Management framework implementation

Confirm the newly

designed FX risk management framework is operating as intended and capture lessons learned (KPIs, performance management reporting) Perform test of design to identify performance gaps of the newly designed FX risk management framework Implement an ongoing monitoring program Identify further opportunities to extend the benefits across the XYZ group

Ernst & Young Treasury management

Strategy
Assurance & control Organization & governance

Cash and liquidity management

Performance assessments

Qualityity assurance
management
Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury

50% of large companies have not implemented

Implementation

to forecast their cash flows. 34% of companies do not analyze the variances between real cash flows and forecasts systematically, in order to make the necessary improvements.
Source: Ernst & Young European Treasury Survey

homogenized procedures

Cash remains King

The ability of companies to manage liquidity and loans is scrutinized with ever more attention by financial markets and stakeholders. During the financial crisis, the capacity of a firm to generate liquidity has re-emerged as the priority. Treasury plays a central role in monitoring liquidity risks, setting up cash-flow forecasting and planning and reporting on liquidity buffers, relevant financial covenants and other key-indicators for liquidity risk. Stress tests are becoming increasingly important to monitor potential liquidity risks. These should reflect both company specific and market-wide scenarios and are based on historical market trends, while also mapping hypothetical - but possible future business scenarios. Based on these tests, liquidity constraints can be identified to be taken into account in your planning and risk control.

Develop or review methodologies for

cash-flow forecasting and variance analysis procedures Review or select systems and technology used in the cash forecasting process Optimize the cash and liquidity management processes and structures in alignment with global tax strategies Assess and reorganize cash management activities (for instance, methodology to implement shared service centers) Develop a framework for structured monitoring of key indicators for liquidity risk Enhance cooperation from local management

Your benefits
We are able to guide you through the optimization of the financial resources of your company (cash management and funding) and detect the best path to follow to ensure that cash is effectively managed. We will assist you in assessing cash forecasting reliability and process adequacy as well as executing or designing an

adequate cash forecasting model. In addition, we have the right knowledge to assist you in securing your payments means, more effectively leveraging on Single Euro Payments Area (SEPA) and other changes in the payments landscape.

Our services

We help you to focus and optimize the methodologies for cash and liquidity management and monitoring liquidity risks. We will assist you to:

Define a liquidity risk management

strategy, policy and procedures Review your companys local, regional, and global cash collection, disbursement and bank account structure Develop cash pooling solutions, ranging from architecture and processes to the request for proposal (RFP) and bank shortlist
Ernst & Young Treasury management 8

Strategy
Assurance & control Organization & governance

Corporate funding
Performance assessments

Qualityity assurance
management
Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury

Funding strategy
In todays financial context with recurrent liquidity tensions and increases in funding Implementation costs, the control of liquidity risks is of strategic importance to companies. Access to a substantial and diverse pool of financing is a security interest, providing companies with the flexibility to adjust their financial strategy. Regulatory, legal, tax and accounting constraints complicate both the assessment and the implementation of financing solutions. In this environment, the key factors to success in the financing function of treasury are:

Define the financing strategy

Identification of the medium and long

Implementation support
The definition of an optimal funding

strategy, to optimize financing costs while at the same time minimizing liquidity risks The set up of appropriate in-house banking structures in a complex regulatory and tax environment Effective bank and investor relationship management Effective management of the financial documentation supported by management and control term financing needs Develop a methodology for forecasting and monitoring financing needs and financial covenants Practical examination of the borrower and its group in terms of banking loans and/or intra-group and concerning the recurrent and exceptional guarantees granted to third parties Identification of the financing structures diversity possibilities. For example, bond/ MTN issues, money market, open market or syndicated banking credit/loan, securitization, project financing, sale/ lease back and factoring

Assist with implementing the necessary

structures and teams to manage the financing needs Set up an in-house bank, including a transfer pricing policy for financial instruments and guarantees Provide tax constraint management while preserving an acceptable administrative management level (e.g., withholding tax, interests deduction, stamp duty and VAT)

Your benefits

Appropriate structures, procedures and


systems to determine and manage the financing strategy of the company A financing strategy which is tailored to meet the organizational, legal, regulatory, fiscal, contractual and accounting constraints Support in reaching optimal financing costs and appropriate diversification of funding sources

Negotiate financing

Implement a call for tenders / RFP

Our services
Our services cover the full range of financing activities, from defining the strategy to support in negotiating and implementing a financing arrangement. procedure, including the assistance in preparing term sheets to support negotiations with banks Examination and negotiation, with the assistance of legal advisors, of the financing arrangements Second opinion on offered financing arrangements, including pricing of (embedded) derivatives and key covenant implications Analysis of the implied credit risk of the company, based on the credit spread included in the financing arrangement Analysis and advisory on tax and/or accounting operations treatments
Ernst & Young Treasury management

Strategy
Assurance & control Organization & governance

Financial instruments valuation and accounting

Qualityity assurance Planning
Treasury technology

Treasury management
Performance assessments Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Implementation

The solid base or did you feel it shaking, too?

Valuation
Reliable information is the basis of your decisions. The valuation of your financial instruments is, inter alia, the foundation for measuring and managing risks and taking strategic decisions. If this foundation is not stable, the whole building is in danger. Due to the volatility in the financial markets, the assessment and valuation of financial instruments has become more complex. Counterparty and liquidity risks have to be quantifiable components of your risk assessments and valuations. With the increasing use of derivative instruments, it is important to keep the accompanying, sometimes very complex, accounting rules in mind to ensure that the accounting results are in line with the economic rationale of your hedging strategy.

Valuation of complex financial

instruments, including embedded derivatives and personnel options Modeling and valuation of complex derivatives Quantification of credit risks/spreads and impacts on valuation Valuation and hedging in illiquid markets

Accounting for commodities and energy derivatives

virtual power plants and modeling of electricity spot prices (Hourly Price Forward Curve) Application and interpretation of the own use exemption Industry-specific features (energy and utilities sector) Hedge accounting for commodity derivatives, including emission rights

Valuation of energy derivatives, such as

Accounting for financial instruments

We assist you in applying the (hedge) accounting provisions of IAS 39 or your local GAAP, in particular:

Your benefits

Preparation or review of your accounting

policy compared with leading practices Design and optimization of hedge accounting procedures Measurement of hedge effectiveness Support in applying the de-recognition requirements so that a reliable accounting of asset backed securities, transactions, factoring, etc. is achieved Reviews of large portfolios Provide accounting advice for the issuance of mezzanine capital, such as convertible bonds, hybrid bonds Knowledge transfer and training to the treasurers and relevant operating units

Experience in financial instruments and

valuation Skills for modeling and quantifying risks and valuing derivatives Forward-looking statements by use of various solid valuation methods

Our services
For Ernst & Young, valuation and accounting are essential core competencies. Our goal is to translate this knowledge to add value to our clients. Our support services can be divided here as follows: Finally, we support you in the application of disclosures and risk assessment-related information according to IFRS7.
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Strategy
Assurance & control Organization & governance

Treasury technology
Performance assessments

Qualityity assurance
management
Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury

Technology: the core of treasury

TMS has a central role in the control
Implementation

environment of treasury, as it provides functionality for front, middle and back office activities and controls, with a trend toward straight-through-processing. In addition, the TMS provides the basis for critical information such as forecasting, valuation and reporting. It is therefore essential to ensure that the system aligns with the companys requirements and is adequately configured and implemented.

Support and guidance in the implementation

To ensure that IT systems quickly and seamlessly fit into the business of your treasury, we will guide you in the implementation through: In addition, we provide quality assurance through all parts of the implementation project.

Your benefits

Optimal alignment of treasury

Overall program and/or project

At the same time, the range of offers in the software industry is becoming more and more complex due to significant evolutions in technologies and approaches. In the current economic environment characterized by the concentration of vendors, IT solutions tend to widen their scope of functionalities, covering needs from market activities to cash management as well as banking communication. management Conduct design workshops and prepare design documents (blueprints) Define and configure static data Prototype instruments and unit test Define reporting requirements Reconcile static data Develop and perform testing programs and scripts End-user training technology to your requirements Fast and efficient integration of systems into the process Extensive TMS knowledge and proven methodologies for system selections and implementations Independence in choosing a system provider Sustainable knowledge transfer
Forecasting system Risk management system

Accounting system Reporting system

Treasury Management System

Bank systems Cash management Liquidity management Trading platforms Corporate finance Interest rate risk FX risk Credit risk Commodity Treasury control & reporting Treasury accounting Back-office Confirmation systems

Our services
Selecting a solution that fits your needs Together with you we identify your treasury organizations current and future business requirements. This analysis should not only focus on functional requirements but also on technical and vendor-related aspects. Based on this analysis and our extensive knowledge of the TMS market we provide:
Market data systems

Phase 0

Advice on vendors to be considered in a

structured selection process Support in development of a RFP, based on existing proven templates Management of the complete RFP process, including vendor communication Advice on the vendor responses Facilitation of vendors demos, Proof-ofconcept and/or reference visits Assistance with the preparation of the cost/benefit analysis and business plan
Project start and planning Strategic scope Request for InformationReview: Motivated long list Determine selection criteria Draw up Motivatedrequest for Send, receive and assess short listinformation RFI Make long list Test agendaDraw up test agenda Demos Final report Phase 1 Phase 2 Final report with recommendations Implementation / integration Duration EY systems knowledge base Analyse system integration Ernst & Young Treasury management

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Strategy
Assurance & control Organization & governance

Assurance and control

Performance assessments

Qualityity assurance
management
Valuation & accounting Financial risk management Corporate Cash - and funding liquidity management

Treasury technology

Planning
Treasury

Effective control
Several recent events remind us of the importance for a company and its Implementation shareholders to have an effective control environment for its treasury activities. The international accounting standards (IFRS and FAS) and the obligation for executives to report the internal control framework (e.g., the Financial Security Agreement Law and the Sarbanes-Oxley Act) have created an additional level of compliance. For a technical and high risk function, such as treasury management, specialized assistance is often necessary to alert the cash manager, the finance department or the executive management about the main challenges and to comfort their opinions about the quality of the organization and the internal control framework related to cash, financing and risk management activities. It is often necessary to reinforce the internal teams of the company by mobilizing competences and methodology specifically developed for treasury management control.

Key questions

Are the objectives for treasury and

Our services
financial risk management clearly defined? Are all financial risks of the group identified and correctly measured? Is treasury management meeting its objectives and does it respect the limits and guidelines assigned to it? Is the organizational set up satisfying and are its procedures correctly documented and implemented? Are the resources of the treasury management department sufficiently numerous, competent and independent? Is the reporting on treasury transactions and positions relevant, exhaustive and independently done? Are the methods used and the financial, legal and fiscal risks related to derivative instruments well understood, measured and controlled? We offer to share control and management systems and methodologies, taking into account the requirements for:

Legislative/regulatory compliance Efficiency Efficacy

Accountability To this end, we perform a full review by checking and analyzing the current state, followed by recommendations for optimization with regard to the statutory requirements based on our experience of

leading practice. Our services include support to the existing internal audit units in the planning, preparation, performance and reporting, taking into account current and future trends. The results are recommendations for the development of an effective (continuous) monitoring control environment, support for the implementation of programs (such as fraud prevention or SOX) and evaluation of the implemented controls and efficiency.

Your benefits

Assurances and advice focused on

minimizing operational risks and identifying potential operational improvements Compliance with relevant legislation Active use of your control framework to increase efficiency and effectiveness of processes
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