Treasury Consulting Services

In Consulting

The uncertain business environment has made it imperative for CFOs and Treasurers to build a futuristic treasury function. EY can help your treasury function evolve faster while responding to changing market conditions and become a strategic partner.

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How EY Treasury consulting services can help?

Shareholders expect companies to demonstrate complete transparency about how the financial resources and risks are being managed. The demands for increased transparency and better controls are not only driving a global trend toward centralization of treasury activities but are also compelling Treasurers to cope with the growing complexity of financial instruments, volatile financial markets and the introduction of new regulations and accounting practices.

In this evolving environment, EY’s Treasury consulting can help you design actionable recommendations, leverage advanced technologies, and take immediate steps to strengthen the performance of your treasury function.

EY’s Treasury consulting team include industry leaders from high-performing companies with advanced skills and experience needed to provide you sophisticated and practical treasury solutions. Our portfolio of solutions covers the full scope of a treasury function including:

  • Treasury Strategy and Governance

    A well-defined treasury strategy designed to achieve organizational goals as also guide day-to-day operational decisions. We help you:

    • Review and benchmark treasury strategy, policies and governance
    • Conduct gap assessments and process reviews
    • Design and deploy target operating model
    • Implement treasury centralisation and shared service centres
  • Finance Cost Optimization

    Our unique finance cost optimization solution focuses on optimizing the finance cost component in the P&L. The solution helps clients implement a robust and optimal banking relationship management framework.

    • Interest cost optimization: Focus on existing business plan, funding mix, product profile, credit rating and benchmarks existing interest costs with market rates and peers
    • Bank charge optimisation – Exhaustive assessment and benchmarking of the bank relationship landscape to provide insights on wallet sizing, collection costs, geographical presence and qualitative and quantitative analysis of transaction banking costs.
  • International Freight Cost Optimization

    • End to end solution for supply chain logistics model
    • Model cost optimization opportunities for freight shipment, warehousing and operations
    • Design and optimize logistical competencies such as dispatch planning, plant to port, port to warehouse, outbound warehousing and distribution
  • Commodity price risk management

    Organizations involved in commodity extraction, refining, marketing, trading or hedging operations routinely operate in complex financial and physical commodity markets. To manage this risk we focus on providing commodity price risk management solutions across all leading commodities covering crude, petroleum products, ATF hedging, precious and non-precious metals and soft agricultural commodities. These include

    • Determining strategic, operational and commodity risk mitigation solutions
    • Internal control assessment and review
    • Commodity price risk management quantification and monitoring
    • Setup of commodity trading entity
    • Technology support including implementation of CTRM/ETRM systems
  • Treasury accounting and valuations

    EY Treasury Consulting teams can help you manage accounting and regulatory changes, achieve compliance and mitigate risk in relation to your risk exposures by:

    • Evaluation of hedge accounting framework and its application under Ind AS 109 / IFRS 9
    • Preparation of hedge documentation, performing hedge effectiveness testing and preparation of disclosures in financial statements
    • Automated implementation of hedge accounting framework
    • Independent fair valuation of financial instruments such as derivatives, fixed income securities and structured products
    • Development and validation of fair valuation models including the fair valuation adjustments such as Credit Valuation Adjustments (CVA) and Debit Valuation Adjustments (DVA) for financial instruments
  • Financial risk management

    Financial risk management requires a well-defined risk management strategy which is aimed at protecting structured margins from the business. Our team can help you optimise your financial risk management framework by:

    • Developing and implementing risk mitigation and P/L protection strategies and policies across FX, interest rate and commodities
    • Implementing financial risks quantification models like sensitivity analysis, value at risk and scenario analysis
    • Developing framework for performance, risk and management reporting
  • Liquidity and investment management

    Typical challenges faced by treasurer’s include weak visibility of cash in hand, inability to mobilize and manage cash and development of accurate cash forecasts. We assist to help improve visibility, optimise cost and ensure control over processes by:

    • Developing and implementing a robust cash forecasting framework
    • Setting up bank connectivity and automated payment solutions
    • Designing and implementing liquidity management models such as in-house banking, payment factory and cash pooling structures
    • Developing strategies and operational framework to optimise return and minimise risk on investible surplus
    • Pre-deal and post-deal analysis for investment monitoring
    • Providing ongoing support for risk and performance management for investment function of corporates, pension funds and family offices
  • Supply chain and trade finance

    The current business environment encourages corporations to reduce the carrying cost of working capital and improve cash flow from operations. As a result, Supply Chain Finance arrangements for trade payables and receivables are becoming critical for a healthy financial supply chain. We can assist you to:

    • Design a framework for payable management, early payment solutions, dynamic discounting facilities, reverse factoring
    • Explore opportunities for timely realization of receivables
    • Develop vendor spend matrix and explore opportunities related to Days Payable Outstanding enhancement, invoice synchronisation and discounts
    • Benchmark working capital management metrics
  • Treasury technology solutions

    Digital tools are creating synergies across treasury functions to drive operational efficiency and strategic decision making. Implemented in the right way and with the right partner, technology will enable treasury to harness real time data, develop predictive models, optimise costs and increase ROI. Our solution offerings include:

    • Treasury technology solution design
    • Vendor selection and empanelment
    • Treasury Management System implementation and support services
    • Intelligent automation using RPA and other cognitive automation technologies
    • Treasury analytics solution design and deployment
    • Business intelligence and visualisation for data driven decision support
  • CAFTA learning solutions

    Fast changing corporate world demands us to constantly upgrade our skills and knowledge. With the need to bridge the gap between industry and education, EY’s certification program enables participants to exchange perspectives, build on each other’s ideas, analyse issues, exercise judgement and make decisions which is the hallmark of skilful leaders. To know more click here.

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