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What you should really expect from a TMS

David Miller, SVP TreasurerRevital Gadish, SVP TreasuryBob Stark, VP Strategy

© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 2

Today’s discussion

Agenda

TMS in the Cloud: why cloud matters

Protection against fraud and cybercrime

Business Continuity Planning

Benefits realized by Hunt and Payoneer

TMS in the Cloud


What does the cloud mean for treasury?

Feature of a Cloud TMS Value to Treasury

Managed upgrades by vendor No more upgrades (that you have to do)Your TMS stays up to date!

Access over internet Treasury from a beach (or at home)Enables better treasury coverage in global markets

Platform wide monitoring Vendor is managing your entire platform with a higher SLA than your IT can provide

Deployment of resources across all customers

More memory, bandwidth, attention

Complete business continuity No matter the scenario, TMS keeps running


What does the cloud mean for treasury?

Feature of a Cloud TMS Value to Treasury

More functionality, more often Continually updated technology

Personalize usage, views by company and by individual user

TMS that adapts to you rather than the other way around

Behind the scenes web integration using APIs and web services

Eliminate implementation “project” to connect ERP. Enables more information to be shared

across platforms

Transfer of risk and responsibility away from internal hosting

Protects treasury data and workflows from its own employees

Improved application, data, workflow controls

Treasury is aligned with entire organization’s information security program

Protecting against fraud and cybercrime


Application Security

TMS offers ‘better’ than just UserID and Password:

Virtual keyboardMulti-factor authentication IP Filtering Single Sign-On Encrypted VPN



Data Security

Data encryption–At rest and in transit– In database & in

application–For production, backups,

and archives

Very technical looking pictures



Report

SOC1 An assessment that controls exist

SOC2 AICPA’s recommended report for cloud service providers: • Assesses the security behind the controls

PenetrationTesting

Most vendors hire security firms (McAfee, Qualys, etc.) to test external vulnerability

Audit Reporting

Assessing Data Security


A visual dashboard or daily summary report is critical to monitoring suspicious activity

Setting up detection rules in your payments system will flag transactions that meet predetermined conditions, requiring further attention

e.g. payments to North Korea or payments to a bank account that was just changed in the system

Fraud Monitoring

Business Continuity


Business Continuity

Loss Conditions

Scenarios Company offices are disabled (cyberhack)

Company offices can’t be accessed (snowstorm)

Company offices lose key services (power or internet)

Treasury team wins lottery and everyone quits

Goal Perform treasury from other alternate locations(other offices, home, Starbucks…)


Business Continuity

Loss Conditions

Goal Perform treasury from other alternate locations

What does a TMS offer?

• Datacenters for TMS reside in different locations than company offices

• Same workflows can be run anywhere in the world by authorized users

• Treasury system can be accessed via mobile device and/or low speed web connection

• Additional security can be implemented for access outside of company office (so security is consistent or better when remote)

How we benefited from a TMS

David Miller, SVP Treasurer


TMS Project Implementation was

Sponsored by the CFO

Led by Treasury

A collaboration of different groups:– Accounting– Accounts Payable– Technology– Treasury– Finance

Hunt – TMS Selection and Implementation


Define your goals and be realistic on timing

Get buy-in from all parties that will be affected

Flexible budget that leaves room for additions, changes, customizations, etc

Name executive level “champion” (e.g. CFO) to support the project

Keep banks informed during the project (to avoid surprises = slow downs)

Don’t stop at demonstrations; require proof of concept with actual data

Find your own references in addition to what vendor will volunteer Ask your banks, ask your peers at TMANY

Attend vendor user conferences, advisory boards, user groups, educational webinars (if offered)

(Hunt’s) Tips and Tricks to make your TMS successful


Cash Management

Results

Saved significant time across various roles

Earlier to market: Cash position set by 10am

Proactive reporting: Get analysis in people’s hands by 8am ET (previously they had to login to bank portals)

Generates 100% of cash journal entries

Created new reporting that didn’t previously exist

Hunt – technology successes


Payments

Results

Full visibility: reduced operational risk

Centralized payment workflows in Kyriba; connected to 5 banks

Processed 8,000 payments with value of $9 Billion+

Standardized approval and documentation procedures for payments – regardless of bank, payment type, region

Better fraud prevention and detection



Bank Account Management

Results

Single system of record for bank accounts and signatories

Improved visibility across all accounts; every account is known

Better controls to manage open/closing + change of signatories

FBAR not a driver for Hunt, but have all the data to comply



Phase 2 of TMS Implementation

Setup Debt and Investment tracking within TMS

– Currently managed in Excel, but lacks STP and integration with cash forecast

Migrate Cash Forecasting to TMS

– Operational risk to use Excel for forecasting

– Lacks straight through process and auto reconciliation with cash position

– Want automated variance analysis to increase confidence in forecast

Hunt – the next successes

How we benefited from a TMS

Revital Gadish, SVP Treasury


Payoneer – TMS Project

Aggregate data from multiple banks to one platform

Reduce manual cash management work

Single treasury database to simplify researching transactions

Automate our FX risk analysis

Improve our cash reporting & forecasting

Build controls for incoming funds, payments, end of month balances

Organize and manage signatory rights in each account

Monitor bank fees

What were our needs?


Cash Management & Forecasting

One platform to review intra day data for hundreds of bank accounts across many banks

Friendly customized work papers

Ability to review balances in several dimensions

Team focuses on analysis rather than compiling work papers

Payoneer – TMS Project Results

Number

Bank

Company

Currency

Type


Cash Management & Forecasting

Mapped all transactions by type to highlight and easily detect unusual transactions

Helpful research tool to enable transactions research by date, amount, bank etc.

Analysis of actual vs. forecast


Amount

Payoneer Japan

BofA

Card settlements 200,000

Client collection 100,000

Corporate expense 160,000

Local bank transfers 150,000

N/A 30,000


Foreign Exchange

Built FX position, per currency, to identify currency surplus

Optimize currency netting management


Cash position per currency $ ₤ € ₪

TMSLegacy system

data

Liabilities position per currency $ ₤ € ₪

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwith56K6_zTAhVFPxoKHUcPBpYQjRwIBw&url=http://feelgrafix.com/975370-bank.html&psig=AFQjCNFiKB_DumvVdQ3CiAP0Qg3AuJN3lg&ust=1495313427160925







Payments

Payments are executed from one platform– Time savings – Easy tracking to avoid double payments

Enforces company’s policy in regards to users managements – initiators/authorizers

Facilitates the tracking of payments in transit

Consolidated payment transactions analysis



Bank Fees Analysis – in process

Fee tracking and analysis for more than 50 banks

Gives the ability to analyze complex bank fee calculation

Ability to run a defined calculation per transaction fee to monthly invoice



Bank Account Management – in process

Tracking of bank accounts inventory. We are adding 3-5 bank accounts a month

Ability to save attachments of board resolutions, approving the opening of the bank account and agreements with each bank

Manage controls over signatory rights including record keeping for all changes

FBAR reporting – Payoneer has many foreign accounts



Key Benefits

1) Scalability

2) Enhanced controls

3) Automation

4) Standardization

5) Centralization of bank data

Payoneer – TMS Project Summary


In Conclusion

The cloud simplifies investment in and implementation of treasury systems

Treasury systems can offer:

Reduced risk

Standardization of process

Scalability

Improved controls – from accessing information to treasury workflows

Questions?

Documents

What you should really expect from a TMS - c.ymcdn.comc.ymcdn.com/sites/ · What you should really expect from a TMS David Miller, ... A visual dashboard or daily summary report is