LESSON 8-Treasury Operations

Front

What is the primary focus of a bank's treasury operations?

Back

To meet individual and institutional customers’ investment and risk coverage needs.

Front

What are the four fundamental pillars of treasury operations?

Back

Technology, Products, Distribution Channels, and Risk Management.

Front

What is the role of technology in treasury operations?

Back

To access real-time information on financial markets and develop systems for pricing products and managing risks.

Front

What types of products does the Treasury offer?

Back

Risk coverage and investment solutions for fixed income, interest rates, equities, and exchange rates.

Front

What is operational risk in the context of treasury activities?

Back

The risk of loss resulting from inadequate or failed internal processes, people, systems, or external events.

Front

What are the key elements of an operational risk management framework for treasury activities?

Back

Strong governance structure, comprehensive policies, effective internal controls, reliable management information system, and robust client processes.

Front

What is the responsibility of the board of directors in treasury operations?

Back

To establish good governance, ensure compliance with market conduct rules, and adopt a code of conduct for the Treasury unit.

Front

What is the importance of segregating duties in treasury operations?

Back

To ensure objectivity and prevent manipulation or fraud by clearly defining roles in front, risk control, and back-office functions.

Front

What should a BSFI do when introducing new products?

Back

Subject new products to a rigorous approval process, including risk analysis and compliance with internal policies.

Front

What is the client suitability process in treasury operations?

Back

A process to ensure that financial products recommended to clients are appropriate based on their financial situation and risk tolerance.