Balancing Digital Aspirations While Addressing Risk Management Fundamentals: Observations From Citi Treasury Diagnostics

14 INTRODUCTION Effective treasury policies, delivered through processes and procedures, managed through key performance indicators is arguably the foundation for achieving financial risk management objectives and a best-in-class treasury function. Digitalization opportunities through process automation and data driven insights exist today but, for many companies, the prerequisite is to address legacy infrastructural challenges, disconnected processes and fractured data-sets often brought about through acquisition and inherited technologies. In this section we discuss: • Treasury Risk Management Policies adopted • Risk Management Constructs, Liquidity Management and Forecasting Currency Exposure • Working Capital Management • FX Risk Management Key Performance Indicator Utilization Complete/partial use of KPI No use of KPI 74% 26% Areas of Treasury Performance and Opportunity Opportunity Performance Policy and Governance Treasury Pillar Index Liquidity Working Capital Subsidiary Funding and Dividend Repatriation Risk Management Systems and Technology