Citi and The NeuGroup Partner on Identifying Best Practice in Cash Management

Citi and The NeuGroup have announced results from the first phase of their partnership to identify best practices in corporate cash management. This was an outcome of a joint research programme with The NeuGroup’s Global Cash and Banking Group, a peer group of senior treasury practitioners from global companies across a variety of industries.

Highlights of world-class principles identified in the first phase include:

  • Organisation – owning core functions, while maintaining significant influence over those that can impact financial results.
  • Centralisation – striking the right balance between headquarter centralisation versus regional and local co-ordination and execution.
  • Technology – continually driving to minimise the number of core platforms, supplemented by ‘best-of-breed’ special-purpose applications where necessary.
  • Talent management – developing and using tools and philosophies for effective recruiting, development and retention of star performers.
  • Bank relationship management – standardising internal management and control of bank accounts and signatories, and the use of scorecards for measuring the performance of global partner banks.
  • Policies and procedures – covering critical functions, including performance metrics, segregation of duties and control processes, and thorough, tested business continuity plans.

Phase two of the principles of world-class cash management project will be completed in March of 2010 and cover processes including in-house banks, cash pooling, and cash forecasting and positioning.


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