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Centralizing Asia-Based Treasury Yields Benefits for Global HR Firm

Meet the Author
Adrian Perez
International Treasury Specialist
Vasudha Saxena

Adrian specializes in helping multi-national companies implement global "best practice" cash management and liquidity solutions. Adrian holds the Association of Corporate Treasurers Certificate in International Cash Management (CertICM) designation and is a regular speaker in various treasury related conferences.

Firm Description: A human resources advisory firm providing senior-level executive search and leadership consulting services, with hundreds of consultants in more than 70 locations worldwide.

Challenge: As their global presence grew, the firm's back office processes developed country-by-country, resulting in a fragmented and decentralized treasury model. In 2009, they decided to centralize and standardize back office functions and integrate a new global finance system.

Solution: The firm decided to consolidate their banking across 13 countries in Asia with J.P. Morgan including in-country accounts, centralized payments and an enhanced automated liquidity structure. Today, the firm's centralized corporate treasury structure sets global policies along with regional management in Hong Kong to manage the region's cash management and forecasting - with enhanced visibility, operational efficiencies and risk management. The major benefits are:

Enhanced visibility

  • Visibility of balances and control of transactional flows
  • Transparent pricing across the region providing better control of the company's expenses

Greater operational efficiencies

  • Single upload/download from ERP system resulting in a reduction of errors
  • Standardization of processes allowing improved reconciliation and increased efficiency

Improved liquidity management of Asia Pacific (APAC) balances

  • Enhanced yield on operating balances
  • Realized value for funds held in restricted markets (e.g. Chinese Yuan (CNY), Indian Rupee (INR))

Reduced costs

  • Reduction in intangible administrative costs resulting from duplication of treasury functions
  • Reduced the number of bank accounts to reconcile and maintain

Enhanced risk management

  • No physical movement of cash resulting in less risk with foreign exchange spot conversion and cash movement
  • Real-time update of information
  • Greater adherence to SOX guidelines
  • Reduced counterparty risk exposure
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