Top risks and controls for Treasury

From the Doorstep International risk register, curated by Ahmer Nehal. Last updated 17 Oct 2026.

The Treasury register lists 36 key risks and 72 best-practice controls across 6 units: Asset Liability Management, Capital Markets, Corporate Treasury, Derivatives, Foreign Exchange, Money Market. Use it to identify risks, benchmark your existing controls or start a risk and control self-assessment (RCSA).

Get the RCSA workbook Run it in the software

A bank's treasury department is in charge of overseeing all of the institution's financial assets, including investments, funding, and liquidity.

In order to detect potential risks that could affect the bank's financial stability and performance, it is crucial for the treasury function to frequently undertake risk assessments.

These dangers can include, among others, market turbulence, credit risk, liquidity risk, and operational risk.

The treasury function can proactively detect and manage these risks by conducting routine risk assessments, maintaining the bank's financial stability and reducing possible losses.

The treasury function must conduct risk assessments on a regular basis since they are frequently mandated by regulations.

Asset Liability Management: key risks and controls

Accountable for managing the bank's balance sheet, including the control of funding, liquidity, and interest rate risks.

Risk	What can go wrong	Best-practice controls
Credit risk	Banks face the risk that borrowers will default on their loans, which can impact the value of the bank's assets. Banks must manage their credit risk by diversifying their loan portfolio and monitoring borrower creditworthiness.	Loan Portfolio Diversification: Banks should diversify their loan portfolio across different sectors and types of borrowers to reduce concentration risk. By spreading the loans across various industries and customer segments, banks can minimize the impact of defaults in a particular sector or from a specific borrower. Creditworthiness Assessment: Banks should implement rigorous credit assessment processes to evaluate the creditworthiness of borrowers before granting loans. Thorough evaluation of borrowers' financial stability, repayment history, and risk profile can help identify potential default risks and enable proactive risk management measures.
Interest rate risk	Banks face the risk that changes in interest rates will impact the value of their assets and liabilities differently. For example, if interest rates rise, the value of the bank's fixed-rate loans will decrease, while the value of its deposits will remain the same. This can lead to a mismatch between the bank's assets and liabilities, which can negatively impact profitability.	Interest Rate Swaps: Interest rate swaps can help banks mitigate the risk of changes in interest rates by allowing them to exchange cash flows with another party based on a predetermined interest rate. This can help the bank lock in a fixed interest rate on their assets and liabilities, reducing the impact of interest rate fluctuations. Asset-Liability Management (ALM): ALM is a risk management technique used by banks to match the maturities of their assets and liabilities. By aligning the maturity of their assets and liabilities, banks can reduce the risk of a mismatch between the cash inflows and outflows. This can help banks reduce the impact of changes in interest rates on their profitability.
Liquidity risk	Banks must ensure that they have sufficient liquid assets to meet their short-term obligations, such as deposit withdrawals. Managing liquidity risk involves holding an appropriate level of cash and short-term investments.	Robust Cash Flow Management: Implementing a comprehensive cash flow management system is essential for banks to monitor and forecast their liquidity needs accurately. This includes maintaining detailed cash flow statements, conducting regular liquidity stress tests, and employing sophisticated cash flow modeling techniques. Diversification of Liquid Assets: Banks should diversify their short-term investments to minimize liquidity risk. By spreading their holdings across various highly liquid assets such as government securities, high-quality corporate bonds, and money market instruments, they can enhance liquidity and reduce exposure to any single investment.
Market risk	Banks face the risk that changes in market conditions, such as economic downturns or fluctuations in currency exchange rates, will impact the value of their assets and liabilities. Banks must manage market risk by diversifying their asset portfolio and monitoring market conditions.	Diversification of asset portfolio: This is the most effective way for banks to manage market risk. By diversifying their asset portfolio across different asset classes and markets, banks can minimize the impact of adverse market conditions on their overall portfolio. Monitoring of market conditions: Banks should have robust monitoring mechanisms in place to keep track of changes in market conditions. This will allow them to identify potential risks and take appropriate measures to manage them before they become a threat.
Operational risk	Banks must ensure that their asset-liability management practices are effectively implemented and that they have appropriate systems and processes in place to identify and manage operational risks, such as errors or fraud.	Robust Internal Controls: Implementing strong internal controls is essential to mitigate operational risks in asset-liability management. This includes regular reconciliation, segregation of duties, and stringent approval processes to detect and prevent errors or fraud. Regular audits and independent reviews enhance the effectiveness of these controls. Automated Monitoring Systems: Deploying advanced technological solutions like automated monitoring systems can significantly enhance risk identification and management. These systems employ data analytics and artificial intelligence algorithms to detect anomalies, patterns of fraud, or operational errors in real-time. Timely alerts and proactive action can help mitigate potential risks promptly.
Regulatory compliance	Banks must comply with various regulations related to their asset-liability management practices, such as stress testing and liquidity requirements. Failure to comply with these regulations can lead to fines and reputational damage.	Robust Compliance Framework: Implementing a comprehensive compliance framework is crucial to mitigate the risk associated with regulatory non-compliance. This includes establishing clear policies, procedures, and controls aligned with asset-liability management regulations. Regular monitoring and internal audits should be conducted to ensure adherence, minimizing the chances of fines and reputational damage. Automated Stress Testing Systems: Deploying advanced technology-driven stress testing systems can enhance a bank's ability to comply with asset-liability management regulations. These systems allow for timely and accurate assessments of the bank's resilience to various scenarios, ensuring compliance with stress testing requirements. By identifying and addressing potential vulnerabilities, banks can proactively mitigate the risk of fines and reputational damage.

Capital Markets: key risks and controls

Accountable for overseeing the bank's capital market operations, which include trading in securities, issuing debt and equity, and managing the bank's investment portfolio.

Risk	What can go wrong	Best-practice controls
Counterparty risk	Banks face the risk that their counterparties, such as other banks or financial institutions, will default on their obligations. Banks must manage counterparty risk by diversifying their counterparty exposure, monitoring counterparties' creditworthiness, and negotiating appropriate contractual terms.	Diversification of Counterparty Exposure: Banks can mitigate counterparty risk by diversifying their exposure across different counterparties. By spreading their risk across a variety of counterparties, banks can reduce their exposure to any one counterparty and lower the likelihood of a significant loss if one counterparty defaults. Credit Monitoring: Banks can monitor their counterparties' creditworthiness by regularly reviewing their financial statements, credit ratings, and other relevant information. This can help banks identify potential problems early on and take appropriate actions to mitigate the risk.
Liquidity risk	Banks must ensure that they have sufficient liquidity to meet their obligations related to capital market activities, such as margin calls and settlement payments.	Robust Liquidity Risk Management Framework: Implement a comprehensive liquidity risk management framework that includes stress testing, scenario analysis, and contingency funding plans. This ensures proactive monitoring and management of liquidity needs, enabling banks to meet their obligations during capital market activities. Diversification of Funding Sources: Reduce reliance on a single funding source by diversifying funding channels, such as accessing different markets, engaging in repurchase agreements, and maintaining a well-balanced mix of short-term and long-term funding. This mitigates the risk of liquidity shortages and enhances the ability to fulfill capital market obligations.
Regulatory compliance	Banks must comply with various regulations related to their capital market activities, including disclosure requirements, risk management guidelines, and reporting obligations. Failure to comply with these regulations can lead to fines and reputational damage.	Establish a strong compliance culture: This involves ensuring that all employees are aware of their obligations under the relevant regulations and are provided with training and resources to comply with them. Additionally, the organization should promote a culture of transparency and accountability. Implement robust risk management processes: These should include policies and procedures for identifying, assessing, and mitigating compliance risks. This could include conducting regular risk assessments, implementing controls to reduce risk, and monitoring compliance activities.
Talent management	Banks must attract and retain skilled professionals with expertise in capital market activities, including trading, risk management, and portfolio management.	Robust Talent Acquisition Strategy: Implement a comprehensive recruitment and selection process to attract skilled professionals with expertise in capital market activities. Focus on building a strong employer brand, leveraging industry networks, and offering competitive compensation packages to attract top talent. Talent Development and Retention Programs: Establish ongoing training and development initiatives to enhance the skills and knowledge of existing employees in trading, risk management, and portfolio management. Provide opportunities for professional growth, mentorship programs, and attractive career advancement paths to increase employee engagement and retention.
Technology and operational risks	Banks must ensure that they have appropriate systems and processes in place to manage technology and operational risks, such as cyber threats, system failures, and errors in trading activities.	Robust Cybersecurity Measures: Implementing comprehensive cybersecurity controls, including firewalls, intrusion detection systems, encryption, multi-factor authentication, and regular security audits, to protect against cyber threats and unauthorized access, reducing the risk of data breaches and cyber attacks. Resilient IT Infrastructure: Establishing redundant systems, backup protocols, disaster recovery plans, and regular testing to ensure the availability, integrity, and reliability of critical banking systems. This minimizes the impact of system failures, such as hardware or software malfunctions, and helps maintain uninterrupted operations.
Volatility and uncertainty	The capital markets are subject to frequent fluctuations and uncertainties, which can impact the value of investments. Banks must manage the risks associated with market volatility, including credit, liquidity, and market risks.	Diversification: One of the most effective controls is diversifying investments across different asset classes, sectors, and geographic regions. This strategy helps mitigate market risk by reducing the impact of fluctuations in any single investment. It spreads the risk and potential losses, thus providing a buffer against market volatility. Robust Risk Management Systems: Banks need to implement and maintain robust risk management systems to identify, assess, and monitor credit, liquidity, and market risks. This includes sophisticated analytics, stress testing, and scenario analysis to anticipate and manage potential fluctuations effectively. Regular reviews and updates of risk management policies and procedures are essential to adapt to changing market conditions.

Corporate Treasury: key risks and controls

Accountable for overseeing internal treasury activities of the bank, such as capital allocation, funding, and cash management.

Risk	What can go wrong	Best-practice controls
Capital management	Banks must manage their capital structure to optimize their capital position and meet regulatory requirements. This involves managing the bank's equity and debt financing, as well as monitoring capital adequacy ratios.	Establishing strong internal controls and governance frameworks: Banks should establish robust internal controls and governance frameworks to ensure that their capital structure is effectively managed. This includes creating a clear reporting and escalation process for any capital adequacy concerns and ensuring that the board of directors receives regular updates on the bank's capital position. Regular stress testing and scenario analysis: Banks should regularly conduct stress tests and scenario analysis to assess their capital position under different economic conditions. This will enable them to identify potential capital shortfalls and take corrective actions to address them.
Credit risk management	Banks must manage the risks associated with their own credit exposure, including monitoring the creditworthiness of counterparties and managing the bank's credit portfolio.	Robust Counterparty Due Diligence: Implementing thorough due diligence processes to assess the creditworthiness of counterparties is crucial. This includes evaluating their financial stability, credit ratings, industry reputation, and risk management practices. Continuous monitoring and timely updates of counterparties' credit profiles ensure proactive risk management. Diversified Credit Portfolio: Maintaining a well-diversified credit portfolio helps mitigate the concentration risk associated with exposure to a single counterparty or industry. By spreading credit exposures across different counterparties, sectors, and regions, banks can reduce the impact of potential credit losses and minimize the overall risk to their credit portfolios.
Interest rate risk management	Banks must manage the risks associated with changes in interest rates, including the risk of asset and liability mismatches. This involves managing the bank's interest rate sensitivity, as well as hedging interest rate risk through derivative instruments.	Effective Asset-Liability Management (ALM): Banks should implement robust ALM practices to identify and monitor potential asset and liability mismatches caused by changes in interest rates. This includes conducting regular stress tests, monitoring the duration gap, and actively managing the bank's interest rate sensitivity. Hedging with Derivative Instruments: Banks can mitigate interest rate risk by using derivative instruments such as interest rate swaps, options, and futures. By entering into these contracts, banks can offset the impact of interest rate fluctuations on their assets and liabilities, thereby reducing the potential losses arising from such mismatches.
Liquidity management	Banks must ensure that they have sufficient liquidity to meet their obligations while minimizing the cost of funding. Managing liquidity involves optimizing the bank's balance sheet and managing the bank's cash flows and cash positions.	Diversification of Funding Sources: A bank can manage liquidity risk by diversifying its funding sources. This involves obtaining funding from multiple sources, such as deposits, short-term borrowing, and long-term borrowing, to reduce reliance on any single source of funding. This control is highly effective in mitigating liquidity risk. Stress Testing: Banks can conduct stress testing to identify potential liquidity risks and determine the impact of various scenarios on their liquidity positions. Stress testing helps to identify potential liquidity gaps and allows banks to develop appropriate contingency plans to mitigate these risks.
Regulatory compliance	Banks must comply with various regulations related to their internal treasury activities, including risk management guidelines and reporting requirements.	Robust Risk Management Framework: Implementing a comprehensive risk management framework that aligns with regulatory guidelines is crucial. This includes establishing clear risk appetite, defining risk limits, and deploying effective risk measurement and monitoring systems. Regular risk assessments, stress testing, and scenario analyses should be conducted to identify potential weaknesses and proactively address them. Strengthened Compliance Measures: Banks must invest in robust compliance programs to ensure adherence to internal and external regulations. This includes establishing a dedicated compliance function, implementing effective policies and procedures, conducting regular compliance training, and leveraging technology solutions for real-time monitoring and reporting. Regular audits and independent assessments should be performed to identify and rectify any compliance gaps.
Talent management	Banks must attract and retain skilled professionals with expertise in internal treasury activities, including liquidity management, capital management, interest rate risk management, and credit risk management.	Robust Talent Acquisition Strategy: Develop a comprehensive recruitment plan to attract skilled professionals with expertise in internal treasury activities. Leverage industry networks, job portals, and targeted marketing campaigns to identify and engage potential candidates. Streamline the hiring process, offer competitive compensation packages, and emphasize professional growth opportunities to enhance retention. Structured Training and Development Programs: Implement targeted training initiatives to enhance employees' skills in internal treasury activities. Offer specialized workshops, certifications, and mentorship programs to strengthen liquidity management, capital management, interest rate risk management, and credit risk management expertise. Foster a learning culture that encourages continuous professional development and knowledge sharing.

Derivatives: key risks and controls

Accountable for overseeing the execution of derivative transactions, risk management, and adherence to legal and regulatory requirements in the bank's derivatives business.

Risk	What can go wrong	Best-practice controls
Complexity and transparency	Derivatives activities can be complex, and the underlying risks may not be transparent. Banks must ensure that they have appropriate governance and risk management frameworks in place to manage the risks associated with derivatives activities and communicate these risks to stakeholders.	Establish a robust risk management framework: This control involves implementing a comprehensive risk management framework that identifies, assesses, and manages the risks associated with derivatives activities. This framework should include clear policies, procedures, and controls that are regularly reviewed and updated to reflect changes in the business environment. It should also incorporate stress testing and scenario analysis to assess the impact of adverse events on the bank's financial position. Implement strong internal controls: This control involves implementing strong internal controls to ensure that derivatives activities are conducted in a controlled environment. This includes segregating duties, ensuring that transactions are appropriately authorized.
Counterparty risk	Banks face the risk that their counterparties, such as other banks or financial institutions, will default on their obligations related to derivatives contracts. Banks must manage counterparty risk by diversifying their counterparties, monitoring their creditworthiness, and negotiating appropriate contractual terms.	Counterparty Diversification: Banks should diversify their counterparties by spreading their exposure across multiple financial institutions. This reduces the impact of a single counterparty default and minimizes the overall risk to the bank's derivatives contracts. Creditworthiness Monitoring: Banks need to continuously monitor the creditworthiness of their counterparties. Regular assessments of their financial stability and credit ratings allow banks to identify potential default risks early on and take necessary actions to mitigate them.
Market risk	Banks face the risk that changes in market conditions, such as interest rates, currency exchange rates, and commodity prices, will impact the value of their derivatives positions. Banks must manage market risk by using appropriate risk management techniques, such as hedging and diversification.	Effective Risk Hedging: Banks should employ robust hedging strategies to mitigate market risk associated with changes in interest rates, currency exchange rates, and commodity prices. Hedging involves entering into offsetting transactions to neutralize potential losses, reducing the impact of adverse market conditions on derivatives positions. Diversification of Derivatives Portfolio: Banks should diversify their derivatives portfolio across different asset classes, regions, and industries. By spreading risk across various instruments and markets, banks can minimize the impact of unfavorable market conditions on their overall derivatives value, reducing vulnerability to specific market fluctuations.
Operational risk	Banks must ensure that they have appropriate systems and processes in place to manage operational risks related to derivatives activities, such as system failures, errors in trading activities, and legal and documentation risks.	Robust Risk Management Framework: Implement a comprehensive risk management framework that includes regular risk assessments, strong internal controls, and effective oversight mechanisms. This will help identify and address operational risks associated with derivatives activities, such as system failures, trading errors, and legal/documentary risks. It should encompass well-defined policies, clear procedures, and regular monitoring and reporting to ensure compliance and prompt response to potential issues. Robotic Process Automation (RPA): Integrate RPA technology to automate manual and error-prone processes involved in derivatives activities. RPA can enhance accuracy, reduce human errors, and streamline workflows, thereby mitigating operational risks.
Regulatory compliance	Banks must comply with various regulations related to their derivatives activities, including reporting requirements, risk management guidelines, and disclosure requirements. Failure to comply with these regulations can lead to fines and reputational damage.	Establish a comprehensive compliance management system (CMS): A CMS is a set of processes, policies, and procedures designed to ensure that a bank complies with laws, regulations, and internal policies. It includes identifying applicable laws and regulations, monitoring compliance, and taking corrective actions when necessary. Implementing a CMS is the most effective control to mitigate non-compliance risks. Conduct regular internal audits: Internal audits are periodic reviews of a bank's operations, processes, and controls to ensure that they are working effectively and in compliance with laws and regulations.
Talent management	Banks must attract and retain skilled professionals with expertise in derivatives activities, including trading, risk management, and product development.	Robust Talent Acquisition Strategy: Develop a comprehensive talent acquisition strategy that focuses on attracting skilled professionals with expertise in derivatives activities. This includes targeted recruitment efforts, competitive compensation packages, and partnerships with academic institutions and industry associations to identify and engage top talent. Employee Development and Retention Programs: Implement robust training and development programs to enhance the skills and knowledge of existing employees in derivatives activities. Provide ongoing learning opportunities, mentorship programs, and career progression paths to attract and retain skilled professionals. Foster a supportive and inclusive work environment that recognizes and rewards high performers.

Foreign Exchange: key risks and controls

Accountable for managing the bank's foreign exchange exposure, which includes risk management, the execution of foreign exchange transactions, and hedging techniques.

Risk	What can go wrong	Best-practice controls
Credit risk	Banks face the risk that their counterparties, such as borrowers or depositors, will default on their obligations related to foreign currency transactions. Banks must manage credit risk by monitoring counterparties' creditworthiness and using appropriate credit risk management techniques.	Due Diligence and Creditworthiness Assessment: Banks should prioritize conducting thorough due diligence and creditworthiness assessments on counterparties engaging in foreign currency transactions. This includes analyzing financial statements, credit ratings, and industry trends to gauge the counterparty's ability to meet obligations. Risk Mitigation Techniques: Implementing effective risk mitigation techniques, such as collateral requirements, guarantees, or credit insurance, can help banks protect themselves against potential defaults. These measures provide an added layer of security and help minimize potential losses in case of counterparty default.
Exchange rate risk	Banks face the risk that changes in exchange rates will impact the value of their foreign currency positions. Banks must manage exchange rate risk by using appropriate risk management techniques, such as hedging and diversification.	Hedging: Hedging is a risk management technique that involves offsetting the risk of an adverse price movement in one asset by taking a position in a related asset. In the context of exchange rate risk, a bank can use derivatives such as forward contracts, options, and futures to hedge its foreign currency positions. Hedging is considered the most effective way to manage exchange rate risk as it allows the bank to lock in a specific exchange rate for a transaction, reducing the impact of any future exchange rate fluctuations. Diversification: Diversification is another effective way to mitigate exchange rate risk. This involves spreading the bank's foreign currency positions across multiple currencies and countries. By diversifying the portfolio, the bank can reduce its exposure to any one currency or country, thereby reducing the impact of exchange rate fluctuations.
Operational risk	Banks must ensure that they have appropriate systems and processes in place to manage operational risks related to foreign currency activities, such as system failures, errors in trading activities, and legal and documentation risks.	Robust Technology Infrastructure: Implementing and maintaining a reliable and secure technology infrastructure is crucial to mitigate operational risks associated with foreign currency activities. This includes comprehensive backup systems, redundancy measures, and regular testing to minimize the risk of system failures and errors in trading activities. Robust Risk Management Framework: Establishing a comprehensive risk management framework enables banks to identify, assess, and monitor operational risks related to foreign currency activities. This framework should include clear policies and procedures, regular risk assessments, ongoing monitoring, and timely reporting to mitigate legal and documentation risks effectively.
Political and economic risks	Banks face the risk that political and economic events in foreign countries will impact the value of their foreign currency positions. Banks must monitor these risks and adjust their foreign currency activities accordingly.	Diversification: Banks can mitigate the risk of foreign currency exposure by diversifying their portfolio of foreign currencies. This strategy involves investing in a range of currencies, rather than concentrating on a single currency. By diversifying, banks can reduce their exposure to the risks of political and economic events in a particular country. Hedging: Banks can use hedging strategies to mitigate foreign currency risks. This involves using financial instruments such as forwards, options, and futures to offset any potential losses from adverse currency movements. Hedging allows banks to lock in a predetermined exchange rate, reducing their exposure to volatility in the foreign currency markets.
Regulatory compliance	Banks must comply with various regulations related to their foreign currency activities, including reporting requirements, risk management guidelines, and disclosure requirements. Failure to comply with these regulations can lead to fines and reputational damage.	Robust Compliance Framework: Implementing a comprehensive compliance framework that includes regular audits, internal controls, and risk assessment procedures can effectively mitigate the risk. This ensures adherence to foreign currency regulations, identifies any potential non-compliance issues, and allows for timely remediation to avoid fines and reputational damage. Enhanced Training and Awareness Programs: Conducting regular training sessions and awareness programs for employees about foreign currency regulations is crucial. By educating staff members on reporting requirements, risk management guidelines, and disclosure obligations, banks can minimize the chances of unintentional non-compliance. Well-informed employees are better equipped to recognize and address potential compliance risks.
Talent management	Banks must attract and retain skilled professionals with expertise in foreign currency activities, including trading, risk management, and product development.	Competitive Compensation and Benefits: Implementing a robust compensation and benefits package that aligns with industry standards and rewards expertise in foreign currency activities can attract and retain skilled professionals. This includes competitive salaries, performance-based bonuses, comprehensive healthcare, retirement plans, and opportunities for professional growth and development. Talent Development and Training Programs: Establishing specialized training programs and development initiatives can enhance employees' expertise in foreign currency activities. Offering opportunities for continuous learning, certifications, mentoring, and exposure to advanced tools and technologies will attract skilled professionals seeking career growth and help retain existing talent.

Money Market: key risks and controls

Accountable for overseeing all short-term investment activities, interbank lending, and the administration of cash reserves in order to meet the bank's short-term liquidity needs.

Risk	What can go wrong	Best-practice controls
Access to liquidity facilities	Banks may need to access liquidity facilities, such as central bank lending facilities, in times of stress. Banks must ensure that they meet the eligibility criteria for these facilities and have appropriate contingency plans in place.	Diversify Funding Sources: Diversifying funding sources is the most effective way to reduce reliance on central bank lending facilities. Banks should explore alternative funding sources such as issuing bonds, equity, or deposits from a range of investors. Stress Testing: Conducting stress tests on a regular basis can help banks identify potential liquidity shortfalls and ensure that they have appropriate contingency plans in place. Banks should also simulate scenarios in which they may need to access central bank lending facilities to determine whether they meet the eligibility criteria.
Managing cash flows	Banks must manage their cash flows to ensure that they have sufficient cash on hand to meet their payment obligations. This involves monitoring their cash flows and forecasting future cash needs.	Cash Flow Analysis and Forecasting: Implement a robust system to regularly monitor and analyze cash flows, enabling accurate forecasts of future cash needs. This proactive approach helps banks identify potential shortfalls and take preemptive measures to ensure sufficient cash reserves are maintained. Liquidity Stress Testing: Conduct regular stress tests to assess the resilience of the bank's cash flow management processes. These tests simulate adverse scenarios and evaluate the bank's ability to meet payment obligations under challenging circumstances, providing valuable insights for contingency planning and risk mitigation.
Managing deposit outflows	Banks rely on deposits to fund their operations and provide liquidity. Banks must manage the risk of sudden deposit outflows by diversifying their funding sources, monitoring their deposit base, and ensuring that they have sufficient liquidity buffers to meet unexpected outflows.	Diversification of funding sources: Banks can reduce their reliance on a single source of funding (e.g., deposits) by diversifying their funding sources. They can do this by issuing bonds or other debt instruments, seeking funding from other banks or financial institutions, or engaging in securitization transactions. Monitoring of deposit base: Banks can monitor their deposit base to identify potential risks and take preemptive measures to mitigate them. This involves closely monitoring deposit flows, analyzing trends in customer behavior, and assessing the impact of changes in interest rates or other economic factors.
Managing the use of collateral	Banks may use collateral, such as government securities or corporate bonds, to secure short-term funding. Banks must manage the risk associated with the use of collateral, including the risk of declines in the value of the collateral.	Comprehensive Collateral Valuation and Monitoring: Implement a robust system to assess the value of collateral regularly, ensuring it aligns with market conditions. Continuous monitoring of collateral value minimizes the risk of declines and allows for prompt adjustments or additional collateral requirements. Diversification of Collateral Types: Encourage banks to diversify their collateral holdings by accepting a range of high-quality assets, including government securities and corporate bonds. This strategy reduces concentration risk and provides a buffer against potential declines in the value of any single collateral type.
Regulatory compliance	Banks must comply with various regulations related to liquidity management, including liquidity risk management guidelines and reporting requirements.	Robust Liquidity Risk Management Framework: Implementing a comprehensive liquidity risk management framework that aligns with regulatory guidelines is crucial. This includes regular monitoring and stress testing of liquidity positions, maintaining adequate liquidity buffers, and establishing clear policies and procedures for liquidity management. Automation and Reporting Systems: Deploying automated systems for liquidity monitoring and reporting helps ensure timely and accurate compliance with regulatory requirements. These systems should provide real-time visibility into liquidity metrics, automate data collection and analysis, and generate regulatory reports efficiently, reducing the risk of errors and delays.
Talent management	Banks must attract and retain skilled professionals with expertise in liquidity management, including cash management, forecasting, and risk management.	Comprehensive Talent Acquisition Strategy: Implement a robust talent acquisition strategy that includes targeted recruitment efforts, competitive compensation packages, and professional development opportunities to attract and retain skilled professionals in liquidity management. This will ensure the availability of qualified individuals with expertise in cash management, forecasting, and risk management. Skill Enhancement Programs: Establish skill enhancement programs to develop and enhance the capabilities of existing employees in liquidity management. This can include training sessions, workshops, and certifications focused on cash management, forecasting techniques, and risk management methodologies. Encouraging employees to continuously improve their skills will help mitigate the risk of talent shortage and maintain a competent workforce.

This register is a starting point for risk identification and benchmarking against international practice. Adapt the risks and controls to your institution's size, products, jurisdiction and regulatory requirements.

Get the Treasury register as an RCSA workbook

A spreadsheet-ready CSV with every risk and control on this page, plus blank columns for control owner, inherent likelihood and impact, control design, operating effectiveness, residual rating and actions. We confirm your email with a 6-digit code, then email you the download link.

Frequently asked questions

What are the key risks in Treasury?

The main risk areas covered are Asset Liability Management, Capital Markets, Corporate Treasury, Derivatives, Foreign Exchange, Money Market. Each unit lists its key risks with a short explanation and the best-practice controls that mitigate them.

How do I use this register for a risk and control self-assessment?

Select the risks that apply to your units, map the listed controls to the controls you actually operate, rate inherent risk and control effectiveness, then agree actions for gaps. The free RCSA workbook on this page has the columns ready.

Put these controls to work this month

Start on the cloud risk management software within 24 hours, or ask for training or advice tailored to your institution.

Request a software demo Ask a question