This book is intended for professionals responsible for handling the administrative aspects of tesoreria in companies or organizations, specifically their own treasuries. The content is divided into twelve units; three focus on financial system analysis; six detail fundamental treasury operations and two provide advice and instructions regarding accounting & treasury practices.
Operational Risk Management
Internal processes within a business organization are key to its survival in the marketplace, yet every organization faces situations which threaten its operational capacity – from minor threats like human error to catastrophic ones like fraudsters taking advantage of systems. This risk is known as operational risk.
An effective operational risk management process is integral for eliminating risks and mitigating their effects when they do occur. To do this effectively requires taking an interdisciplinary approach in identifying and assessing all potential threats affecting the business and understanding how each risk can impact operations.
To fulfill its duties effectively, operational risk management requires a team of specialists who collaborate in gathering and analyzing data on potential threats that might impede on company objectives or outcomes. Furthermore, risk assessments must be conducted regularly so as to aggregate and prioritize risks so they receive sufficient attention.
Operational risk management is a relatively recent phenomenon in GRC, having only emerged as an independent function in 1999-2001 with its introduction by the Basel Committee on Banking Supervision. Yet banks and businesses alike have long recognized operational activities with high risks for themselves and customers as being potentially hazardous. For this function to do its job efficiently, an holistic approach must be adopted toward risk management coupled with an easy access system enabling all relevant stakeholders to easily engage.
Financial Risk Management
This work seeks to provide essential financial knowledge necessary for carrying out administrative treasury management at a company or organization. Contents are designed by providing theoretical explanations along with real life examples to facilitate understanding and comprehension.
Financial risk management entails the identification, assessment and mitigation of potential risks as well as reporting them back to management for transparency and informed decision-making. Financial institutions must consider how best to balance profitability targets against long-term solvency and asset preservation objectives in their risk strategy.
Financial risk differs from operational risks in that it can arise both internally and externally. Financial risks typically result from natural disasters or cyber security incidents whereas operational ones typically arise externally. Liquidity Risk refers to the possibility that an entity will experience difficulty realizing assets or raising funds to meet payment obligations. As part of its financial risk portfolio, inflation risk must also be managed – this means ensuring rapidly rising prices don’t threaten margins and devalue balance sheet assets, thus necessitating coordination between operations and finance teams in various organizations – but particularly small businesses where responsibilities for managing risk tend to rest with both owner/leaders as well as senior finance team members.
Operational Control Systems
Operational control is an integral component of risk management. It involves closely monitoring current organizational activities and identifying errors to avoid crisis situations, while also helping ensure responsibilities are carried out according to established policies and provisions. Operational controlling is closely tied to strategic controlling, helping optimize overall company performance.
Operational control systems can help streamline workflow, enhance communication and collaboration, reduce costs and mitigate operational risks while increasing productivity by optimizing processes. Operation control systems collect data, analyze it visually and provide feedback directly to employees so they can make informed decisions that align with strategic goals.
Operational control can be implemented across industries to identify sources of safety violations on construction sites without impacting work efficiency, and in logistics companies to monitor activities and ensure regulatory compliance. Finally, operational control serves as an integral tool in managing risks and ensuring business success by using visualisation, tracking, and feedback – this way all employees have an in-depth knowledge of their responsibilities while working seamlessly together towards mutual goals.
Information Technology
This work presents the contents of the Professional Module on Auxiliary Operations for Tesoreria Management of the Grade Medium Administrative Management Curriculum Cycle. This manual’s primary goal is to equip participants with financial knowledge necessary for administrating Tesoreria operations within an enterprise or organization.
Each unit is introduced through theoretical explanations accompanied by practical examples and cases to aid understanding and implementation in practice. Every unit ends with a Final Case Practice where students test out procedures learned throughout each module.