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

53 …TO PROVIDE MULTIPLE “PLAYBOOKS FOR TREASURY” New digital technologies and the evolution of financial services has prompted corporate treasury to rethink its future. The playbooks help companies focus strategy based on treasury maturity, legacy infrastructure, appetite to digitalize, and aspirations for role of treasury. • Establish consistent Treasury Policies, Processes and KPIs to manage operational and risk fundamentals. • Implement functionally centralized organization with remit over all Treasury functions performed globally. • Centralize management of Cash and Risk through Treasury centralization constructs; deploy an In-House Bank once feasible. • Be catalyst for organizational deployment of Centres of Scale (e.g. Shared Service Centres) for operations efficiency, control. • Deploy common backbone infrastructure (e.g. TMS) across all Treasury processes; advance TMS/ERP external integration. • Partner with commercial business to ensure deep understanding of balance sheet needs, where risk generation occurs. • Establish Digital and Data Strategy for Treasury in context of organizational priorities. • Assess Processes and Procedures for opportunities to digitalize. • Assess Data availability, timing and veracity to support digitalization. Assess current technology stack vs. future state. • Assess Talent needs to deliver digital objectives. • Use assessments to define Roadmap to deliver on Data and Digital Strategy, balancing opportunities, payoffs, and timing. • Leverage opportunities to partner with Banks, Technology suppliers and emerging FinTechs to learn, experiment, and progress. • Define future-state for Treasury in context of business strategy, organizational priorities, and appetite for transformation. • Create new capacity by completing digitalization journey for routine Treasury processes. • Leverage Data to transition from reporting to analytics, insights, and forecasting to improve decision quality. • Experiment to establish trust in emerging technologies and algorithmic techniques for “best next action” decision-support recommendations and automation. • Engage business partners, identify opportunities for Treasury insights to support growth, and deliver. • Think Data, Think Big, Start Small. The Best Practices Treasury Strengthening Fundamentals The Digitalizing Treasury Advancing Data & Digitalization The Growth Enabling Treasury Value-Added Business Partnership Playbook 1 Playbook 2 Playbook 3