Finance and Accounting - Financial Risk Management
Effectiveness and efficiency of operations
A. Treasury risk management activities are controlled.
- Are risk management practices evaluated frequently as market conditions change?
- Have banks and other third parties been informed as to what the University's procedures and policies are?
- Has an oversight group been developed to meet regularly and evaluate strategies?
B. Interest rate risk is controlled.
- Are cash reserves built up during low interest rate periods?
C. Risk management activity and derivatives transactions are properly authorized.
- Have standards and guidelines been established for reporting to management strategy effectiveness and performance measurements?
- Has a maximum exposure to a counter party been established?
- Has purchasing responsibilities in the risk management program been assigned?
- Have finance's responsibilities in the risk management program been assigned?