Risk and Treasury Management in Company Case Study

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Updated: Feb 14th, 2024

Introduction

Each option has a rational ground beneath it, yet the viable option is to create a middle office that would be responsible for reconciling between the front and back-end. While front-enders could indeed be endowed with additional privileges, adding to the number of their current tasks could affect their performance, which might create a high-risk environment. The same reasoning could apply to expanding the workload on back-end professionals.

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Main body

A new department could be the most viable decision for a number of reasons. The first and most obvious reason is that it could decrease the tensions between all parties by limiting the number of interactions between them. In addition to that, the independent state of the middle office would contribute significantly to the transparency which CFO and the Treasurer both want to achieve. Besides, there is a strong reason to believe that the department will consist of top-level professionals who are skilled in conflict resolution and meticulous data handling to fulfill the task.

This will help to sort the reporting matters and lift the burden from the whole organization. Finally, it would clarify the responsibility chain in European technology as the ambiguity with reporting and review will subside and cases such as the one presented will in the future be addressed to a single responsible party.

Conclusion

One major limitation of the proposed solution, however, is its resource cost. It may be both time-consuming and expensive to create a fully-functional and well-trained middle office. Yet, given the paramount nature of the task at hand and the possibility of new instances should sway the CFO’s opinion in favor of this strategic decision. Overall, it could indeed resolve the problem and contribute to the sustainability of the organization’s risk management procedures.

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IvyPanda. (2024, February 14). Risk and Treasury Management in Company. https://ivypanda.com/essays/risk-and-treasury-management-in-company/

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"Risk and Treasury Management in Company." IvyPanda, 14 Feb. 2024, ivypanda.com/essays/risk-and-treasury-management-in-company/.

References

IvyPanda. (2024) 'Risk and Treasury Management in Company'. 14 February.

References

IvyPanda. 2024. "Risk and Treasury Management in Company." February 14, 2024. https://ivypanda.com/essays/risk-and-treasury-management-in-company/.

1. IvyPanda. "Risk and Treasury Management in Company." February 14, 2024. https://ivypanda.com/essays/risk-and-treasury-management-in-company/.


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IvyPanda. "Risk and Treasury Management in Company." February 14, 2024. https://ivypanda.com/essays/risk-and-treasury-management-in-company/.

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