Treasury System Flashcards
designed to aggregate all of the information used in a modern corporation
Enterprise Resources Planning
to ensure that the
company has adequate cash to fund its operations
Cash Position
Some companies have so little foreign business that ______ are negligible, but larger firms with established treasury operations will likely need the ongoing purchase and sale of multiple currencies
Foreign exchange transactions
buying or selling an investment to potentially help reduce the risk of loss of an existing position
Hedging
system should never require the manual
entry of a transaction into the system more than once, and preferably should involve automated data collection and posting, so that no manual entry is required at all.
Minimize data entry
If supervisory approval is required, the system
should electronically route the pertinent transaction to the correct supervisor for approval
Work flow processing
All treasury transactions should result in a clearly defined _______that identifies who made a transaction and the date, amount, and accounts impacted by the transaction
Audit trail
The system should limit access to certain
modules and require approval of key transactions.
Segregation of duties
The system should automatically notify users if
transaction confirmations have not been received, if hedging policies are being violated, if there are negative cash balances, and so
on.
Warning indicators
operates a worldwide network that banks use to exchange standardized electronic messages that are known as SWIFT MT codes.
Society for Worldwide Interbank Financial Telecommunications (SWIFT)
a company can communicate with all member banks in a closed user group
Standardized corporate environment (SCORE)
Administered by a bank rather than SWIFT.
Member - administered closed user group (MA - CUG)
SWIFT has made this method available to smaller companies having low transaction volumes. It allows them to use either a manual browser - based payment entry system or to integrate directly into their treasury management systems.
Alliance lite
Third- party providers have set up their own access
to the SWIFT network and allow companies access through their systems for a per - transaction fee. This approach avoids the need for
any in - house systems maintenance, but connectivity to any in - house treasury management systems is likely to be limited.
SWIFT bureaus
move funds
MT 101
