Number of FTEs that perform the process group "manage treasury operations" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs) per $1 billion revenue that perform the process group "manage treasury operations," which consists of managing a business' investments in trading in bonds, currencies, and financial derivatives; managing financial assets and holdings of the organization; optimizing the organization's liquidity; investing excess cash; and reducing financial risk. This measure is part of a set of Process Efficiency measures that help companies optimize their "manage treasury operations" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
101167
Total Sample Size:
3,715 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are FTEs.

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Number of FTEs who perform the process group "manage treasury operations" / (Total business entity revenue * .000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 9.7.1 - Manage treasury policies and procedures (10758) - Managing rules and regulations for investments in trading in bonds, currencies, financial derivatives, etc. Establish policies and procedures for investments made. Optimize liquidity in treasury operations.
    • 9.7.1.1 - Establish scope and governance of treasury operations (10885) - Selecting opportunities and the authoritative body for investments in trading in bonds, currencies, financial derivatives, etc.
    • 9.7.1.2 - Establish and publish treasury policies (10886) - Creating and providing investment regulations for the organization. Establish policies and procedures for investments to optimize liquidity in treasury operations. Create a written copy of it.
    • 9.7.1.3 - Develop treasury procedures (10887) - Making processes for investing. Create steps for investments in bonds, currencies, and financial derivatives in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
    • 9.7.1.4 - Monitor treasury procedures (10888) - Checking treasury processes in order to optimize company's liquidity, invest excess cash, and reduce its financial risks.
    • 9.7.1.5 - Audit treasury procedures (10889) - Auditing the treasury function.
    • 9.7.1.6 - Revise treasury procedures (10890) - Reassessing all treasury procedures based on audit findings.
    • 9.7.1.7 - Develop and confirm internal controls for treasury (10891) - Creating and managing the internal control systems for investments in bonds, currencies, and financial derivatives to verify procedures.
    • 9.7.1.8 - Define system security requirements (10892) - Describing the need of system security requirements for controlling access, reliability of information, accountability, and availability of information in the organization.
  • 9.7.2 - Manage cash (10759) - Taking care of all cash-related activities in the business. Manage and reconcile cash positions. Manage cash equivalents. Process and oversee electronic fund transfers. Develop cash flow forecasts. Manage cash flows. Produce cash management accounting transactions and reports. Manage and oversee banking relationships. Analyze, negotiate, resolve, and confirm bank fees.
    • 9.7.2.1 - Manage and reconcile cash positions (10893) - Correcting cash differences in the books of accounts. Make optimum utilization of funds available in the business. Check for differences to rectify.
    • 9.7.2.2 - Manage cash equivalents (10894) - Taking care of all cash-related activities in the business. Utilize short-term assets that can be easily convertible into cash, such as marketable securities, commercial paper and short-term government bonds, and treasury bills.
    • 9.7.2.3 - Process and oversee electronic fund transfers (EFTs) (10895) - Supervising all online transactions.
    • 9.7.2.4 - Develop cash flow forecasts (10896) - Preparing forecasts for the cash generated or used by the organization.
    • 9.7.2.5 - Manage cash flows (10897) - Delaying the outflow of funds as long as possible, but encourage the inflow of as fast as possible.
    • 9.7.2.6 - Produce cash management accounting transactions and reports (10898) - Presenting reports on all cash-related activities. Collect and manage short-term investing activities. Prepare reports of all transactions done.
    • 9.7.2.7 - Manage and oversee banking relationships (10899) - Maintaining and directing the course of relationships with banking partners.
    • 9.7.2.8 - Analyze, negotiate, resolve, and confirm bank fees (10900) - Studying and finalizing bank fees for services provided by banks. Negotiate and finalize nominal fees that bank charges for various services, such as requesting a deposit slip or counter check or certifying papers.
  • 9.7.3 - Manage in-house bank accounts (10760) - Managing financial services provided by an in-house bank structure in the corporation that is operating like a commercial bank.
    • 9.7.3.1 - Manage in-house bank accounts for subsidiaries (10901) - Maintaining subsidiaries' company accounts opened with bank inside the corporation. Manage different financial services provided by in-house bank structure for parent companies' subsidiaries or branches.
    • 9.7.3.2 - Manage and facilitate inter-company borrowing transactions (10902) - Arranging loans for subsidiaries from in-house banks.
    • 9.7.3.3 - Manage centralized outgoing payments on behalf of subsidiaries (10903) - Handling payments made for subsidiaries by parent company.
    • 9.7.3.4 - Manage central incoming payments on behalf of subsidiaries (10904) - Handling payments received by parent company for subsidiaries.
    • 9.7.3.5 - Manage internal payments and netting transactions (10905) - Taking care of all business outflows and recording as whole. Manage making all payments for the organization and its units or subsidiaries. Track in books of accounts of parent company.
    • 9.7.3.6 - Calculate interest and fees for in-house bank accounts (10906) - Computing all expenses paid to and receivables collected over the organization's banking activity. Calculate all charges and receivables, towards interest, fees, and any other payments over its own bank accounts. Record transactions in the books of accounts.
    • 9.7.3.7 - Provide account statements for in-house bank accounts (10907) - Facilitating account statements for all in-house banking activity.
  • 9.7.4 - Manage debt and investment (10761) - Taking care of the organization's financial position. Manage its loans or debts from different sources and investments. Leverage the most profitable options to balance the financial position in the market.
    • 9.7.4.1 - Establish investment policy (14079) - Developing and instituting principles that the organization ill use in making investments.
    • 9.7.4.2 - Manage financial intermediary relationships (10908) - Maintaining smooth relations with financial investment banks that help availing loans and services.
    • 9.7.4.3 - Manage liquidity (10909) - Managing and maintaining enough liquidity in form of cash and cash equivalents in the business to meet urgent and timely requirements
    • 9.7.4.4 - Manage issuer exposure (10910) - Managing the exposure incurred by the issuer for providing credit to the borrower.
    • 9.7.4.5 - Process and oversee debt and investment transactions (10911) - Tracking loans taken and money invested in different options. Arrange and supervise loans from banks and individuals and investments in different available and profitable options.
    • 9.7.4.6 - Process and oversee foreign currency transactions (10912) - Arranging and supervising foreign exchange rate changes to avoid loss on foreign-currency transactions.
    • 9.7.4.7 - Produce debt and investment accounting transaction reports (10913) - Creating transactions report of loans and investments. Prepare and maintain records of loans and investment transactions.
    • 9.7.4.8 - Process and oversee interest rate transactions (14210) - Supervising the interest paid or received by the organization. Arrange and supervise interest rate swap transactions to manage exposure to fluctuations in interest rates. Or attain a marginally lower rate of interest than could be gained through a swap.
  • 9.7.5 - Monitor and execute risk and hedging transactions (11208) - Performing transactions that limit investment risk with the help of derivatives, such as options and futures contracts. Manage interest rates, foreign exchange, and exposure risks. Develop and execute hedging transactions. Evaluate and refine hedging positions. Produce hedge accounting transactions and reports. Monitor credit.
    • 9.7.5.1 - Develop risk management/hedging strategy (12974) - Taking an investment position to offset exposure to certain risks. This may include purchasing opposite of the organization's position in the marketplace, using derivatives transactions, or futures contracts.
    • 9.7.5.2 - Manage interest rate risk (11209) - Handling risks arising from changes in the interest rate.
      • 9.7.5.2.1 - Manage interest rate market data (19575) - Collecting and storing data that pertains to interest rate markets.
      • 9.7.5.2.2 - Determine interest rate exposure for all markets (19576) - Identifying potential interest rate risks for all markets.
      • 9.7.5.2.3 - Determine interest rate hedge requirements in accordance with risk policy (19577) - Deciding the requirements on interest rate investments that are made by trading in futures or options market, on the basis of the accepted risk policy.
      • 9.7.5.2.4 - Execute interest rate trades (19578) - Performing trading on interest rates.
    • 9.7.5.3 - Manage foreign exchange risk (11210) - Taking care of foreign-exchange risks.
      • 9.7.5.3.1 - Manage foreign exchange market data (19579) - Handling and processing information about changes in foreign exchange rates.
      • 9.7.5.3.2 - Determine foreign exchange exposure for all currencies (19580) - Establishing potential foreign exchange risks for all currencies.
      • 9.7.5.3.3 - Determine foreign exchange hedge requirements in accordance with risk policy (19581) - Deciding the requirements on investments in foreign exchange made by trading in futures or options market, on the basis of current risk policy.
      • 9.7.5.3.4 - Execute foreign exchange trades (19582) - Executing all aspects for foreign exchange trade within foreign exchange market. This includes buying, selling, and exchanging currencies at the current or expressed price point.
      • 9.7.5.3.5 - Manage foreign exchange balance sheet risk (19583) - Overseeing the foreign exchange balance sheet with an eye towards potential risk. Risks include changes in conversion rates between the time the transaction occurred and when it is completed, or when transactions are made in a denomination other than that of the organization's base currency.
    • 9.7.5.4 - Manage exposure risk (11211) - Taking care of exposure risks. Maintain financial investments in particular investments or a portfolios that could be risky for the organization.
      • 9.7.5.4.1 - Determine current customer exposures and limit exceptions (19584) - Establishing ongoing risks that the customers face, and the exceptions to exceeded limits.
      • 9.7.5.4.2 - Resolve customer exposure limit violations (19585) - Settling cases that involve violations of customer exposure limit.
      • 9.7.5.4.3 - Manage customer collateral (19586) - Handling customer securities to recover loans that are not paid back.
      • 9.7.5.4.4 - Perform annual customer credit reviews (19587) - Conducting reviews to assess customer credit on a yearly basis. Introduce changes or make recommendations, if needed.
    • 9.7.5.5 - Execute hedging transactions (20137) - Implementing hedging strategy in attempt to alleviate risk. This will include all options, depravities, and futures contracts agreed upon in Develop risk management/hedging strategy [12974].
      • 9.7.5.5.1 - Measure physical positions (19588) - Evaluating investments made in some market to offset the risks of investing in a contrary or opposing market.
      • 9.7.5.5.2 - Establish hedges (19589) - Determining which hedge options to execute.
      • 9.7.5.5.3 - Unwind hedges (19590) - Closing out a position or cashing in derivatives early.
      • 9.7.5.5.4 - Evaluate and refine hedging positions (11213) - Examining options in the market for hedging investments. Select an option.
      • 9.7.5.5.5 - Monitor credit (11215) - Revising credit reports periodically for accurateness and changes that could be suggestive of duplicitous activity.
    • 9.7.5.6 - Produce hedge accounting transactions and reports (11214) - Preparing and documenting accounts and records of all hedging investment transactions to reduce risks due to change in markets.
  • 9.7.6 - Manage financial fraud/dispute cases (16958) - Handling cases that involve financial fraud. Resolve disputes.