Improving Treasury Management

Mitigating Financial Risks Associated with Currency and Payments

Treasury risk management is a critical aspect of any business operation, involving identifying, assessing, and mitigating financial risks associated with a company's treasury function. It includes managing risks related to currency, interest rates, cash flow, debt, and other financial factors that can impact a company's profitability.

At C FOR U, we specialize in treasury risk management advisory designed to help businesses minimize the impact of financial risks on their operations and improve their financial performance. Our team offers a bird's-eye view of all operational processes within a finance or aspiring treasury team, focusing on foreign exchange and payments.

The Risks

We understand that the strength of the treasury function comes from efficient processes and people who are part of it. However, many businesses, particularly SMEs, may not have a well-built-out treasury function. Here are some of the main risks we often see for clients:

Poor pricing due to manual processes to book transactions, resulting in slow response times and missed opportunities.

Lack of transparency due to no benchmarking, making it hard for businesses to know if they are getting the best deal. We help businesses get onboarded with additional providers for their currency payments to ensure they always get competitive rates. You wouldn't make other large purchases such as a car or a house without first comparing the prices out on the market and currency is not exception.

Poor forecasting, leading to bad decision-making or lack of decision-making. By improving forecast-ability, businesses can protect themselves against negative currency movements through using hedging tools like forwards.

Our Services

We offer a range of treasury management services to help businesses mitigate financial risks associated with currency and payments, including:

Pricing Analysis: We review operational processes to identify areas for improvement, particularly in the pricing of currency and payments. For example, imagine you're a small business owner who manually calculates the cost of materials for each project, taking up a significant amount of time.

Online System Implementation: We help businesses implement better online systems to streamline their treasury functions and reduce manual errors. For instance, imagine you're a retailer who manually tracks inventory and sales, which can lead to mistakes and lost revenue. We can help you introduce online systems that give you better visibility of these processes and reduce the risk of errors.

Additional Providers for Currency and Payments: We help businesses find additional providers for currency and payments to increase transparency and competition, leading to better rates.

Hedging Strategies: We highlight areas of hedging to protect against unwanted currency moves and minimize risk.

At C FOR U, we offer customized treasury management services designed to meet the specific needs of each business we work with. Our goal is to help businesses optimize their treasury functions, reduce exposure to financial risks, and improve their overall financial performance.