Future-proof and Risk free rate of return: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Sources: The Treasurer, Aug 2018, p13 & linked pages.)
 
imported>Doug Williamson
(Source: http://www.bis.org/publ/bppdf/bispap72l.pdf)
 
Line 1: Line 1:
1. ''Adjective''.
The theoretical rate of return which can be earned on hypothetical investments which are considered to be risk-free for modelling purposes.


Relatively unlikely to become obsolete in the near future.


Historically, the rates of return on certain types of domestic central government debt were considered to be a close enough proxy for such hypothetical risk-free investments.


2. ''Verb''.
In the modern era, domestic central government debt is no longer considered to be risk-free for this purpose, nor for a number of other purposes for which it was historically considered to be risk-free.


To select or adapt systems appropriately to minimise the risk of obsolescence.




<span style="color:#4B0082">'''''Think ahead'''''</span>
== See also ==
 
* [[Credit spread ]]
:"In such an era of flux, organisations need assurances on efficiency, competitiveness, scalability and future-proofing for investment decisions.
* [[Gilts]]
 
* [[Interest rate risk]]
:The modern treasury function is expected to be more strategic, to collaborate with the business it serves, and to be comfortable with the use of centres of excellence to support global operations, including the use of in-house banks (IHB) and shared services centres.
 
:However, they are often burdened with poor processes and outdated technology."
 
:''The Treasurer's Handbook, Approaching technology decisions in the treasury function.''
 
 
 
 
==See also==
* [[Approaching technology decisions in the treasury function]]
* [[Enterprise-wide resource planning system]]
* [[Futures]]
* [[In-house bank]]
* [[Shared Service Centre]]
* [[Treasury management information systems]]
* [[Treasury workstation]]
 
[[Category:Technology]]

Revision as of 11:56, 12 August 2013

The theoretical rate of return which can be earned on hypothetical investments which are considered to be risk-free for modelling purposes.


Historically, the rates of return on certain types of domestic central government debt were considered to be a close enough proxy for such hypothetical risk-free investments.

In the modern era, domestic central government debt is no longer considered to be risk-free for this purpose, nor for a number of other purposes for which it was historically considered to be risk-free.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Future-proof&oldid=41877’