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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
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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
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 5
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
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 7
Application Security
TMS offers ‘better’ than just UserID and Password:
Virtual keyboardMulti-factor authentication IP Filtering Single Sign-On Encrypted VPN
Protecting against fraud and cybercrime
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Data Security
Data encryption–At rest and in transit– In database & in
application–For production, backups,
and archives
Very technical looking pictures
Protecting against fraud and cybercrime
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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
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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
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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…)
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 13
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)
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 15
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
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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
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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
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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
Hunt – technology successes
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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
Hunt – technology successes
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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
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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?
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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
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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
Payoneer – TMS Project Results
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
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Foreign Exchange
Built FX position, per currency, to identify currency surplus
Optimize currency netting management
Payoneer – TMS Project Results
Cash position per currency $ ₤ € ₪
TMSLegacy system
data
Liabilities position per currency $ ₤ € ₪
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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
Payoneer – TMS Project Results
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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
Payoneer – TMS Project Results
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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
Payoneer – TMS Project Results
© 2017 Kyriba Corp. All rights reserved. PROPRIETARY & CONFIDENTIAL. 29
Key Benefits
1) Scalability
2) Enhanced controls
3) Automation
4) Standardization
5) Centralization of bank data
Payoneer – TMS Project Summary
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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