Context of treasury and Risk policy: Difference between pages

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==The business context==
''Risk management''. 
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise. 


Treasury should hold a pivotal position within the organisation to add most value and must have a detailed understanding of the business. External events that may impact on the business should be identified, solutions recommended (which may not be purely treasury) and communicated in a timely manner.
Risk policy should cover commercial as well as treasury approaches to exposure management.
The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.  
It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.


==Accounting, tax and regulation==
== See also ==
* [[Exposure]]
* [[Risk appetite]]
* [[Risk control]]
* [[Risk tolerance]]


Accounting rules, tax and other legislation or regulation may affect the financial markets accessed by the organisation, the activities undertaken by treasury and how such activities are reported. Regulatory requirements can change frequently so keeping up to date is key.
[[Category:Context_of_treasury]]

Revision as of 14:20, 23 October 2012

Risk management. Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.

Risk policy should cover commercial as well as treasury approaches to exposure management. The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives. It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.

See also


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