Independent review of a Treasury Operating Model

Financial capital fuels economic growth among Africa’s fast-growing economies. The major East African multinational development finance institution (DFI) plays a prominent role in providing financial capital for the continent to promote trade, economic integration and sustainable development.

Providing such services, by its very nature, increases liquidity risk exposure on its balance sheet. This requires enhanced balance sheet management, controls and governance to maximise the economic benefit in continuing to support economic growth in the continent.

Genesis performed a detailed risk analysis on internal processes, policies, documentation and reporting relevant to the treasury operations of a DFI. This assessment documented gaps against best practice for institutions with a comparable business model, structure and balance sheet composition, including documenting a roadmap required to close the gaps. A Treasury Operations Manual was produced.

The manual gives guidance on the institution’s policies, procedures and controls, both operational and accounting. This guides the DFI’s integrated treasury risk management operations. Sources of risk are ever changing and failure to maintain and implement the policies could expose the bank’s balance sheet to new and unforeseen threats.

In providing this document, Genesis supported the institution’s objective to expand its financial funding sources to grow its lending activities. This gave the bank an opportunity to offer a wider range of financial instruments to investors and borrowers while remaining aligned with the development objectives of its charter and effectively managing risk.