benchmarking activities as important. Given the increasing role of treasury, and its
ability to leverage its activities for the betterment or detriment of the firm’s overall
profitability, performance measurement is critical to adequate controls and effective
management. Foreign exchange benchmarks such as fully covered and no-cover in-
dicators allow international treasury a continuing set of metrics which may be used
to reevaluate hedging policies. Treasury, once accepted as a value-added component
of the firm, must be held to similar standards and industry practices (best practices)
if it is to truly contribute to the value of the business.
5.6 SUMMARY: THE EMERGING VALUE-ADDED ROLE OF TREASURY. As domestic
and international treasury operations evolve, reducing redundancy and focusing in-
creasingly on efficiencies which are cross-border, cross-currency, and cross-function,
the role of treasury expands as a source of value to the company as a whole. But there
are many managerial challenges ahead, as many treasuries today are as yet unpre-
pared for true global treasury effectiveness, requiring rethinking and restructuring
treasury operations. Redundancy between domestic and international treasury func-
tions, the need to add staff prepared for the expanding complexity of risk manage-
ment activities and instruments, as well as the continuing impact of global telecom-
munications and technological support are continuing items on the treasury to-do list.
SOURCES AND SUGGESTED REFERENCES
Alfonsi, Michael J. “Best Practices in International Treasury Management.” AFP Exchange.
Bethesda, November/December 1999.
Bedell, Denise. “Choosing a Global Treasury Strategy.” Corporate Finance. London, May
2001.
Corporate Finance, Crunching the Payments Problem: Technology in Treasury Management
1995. A Supplement to Corporate Finance, October 1995.
Corporate Finance. “Regional Pooling and Netting in Europe.” March 1992, pp. 18–25.
Eiteman, David K., Arthur I. Stonehill, and Michael H. Moffett. Multinational Business Fi-
nance, 9th ed. Boston, MA: Addison-Wesley Publishing, 2001.
Frank, Nicholas. “Solving Treasurers’ Troubles: Regional Treasury Centres,” Corporate Fi-
nance Guide to Asian Treasury, February 1996, pp. 2–5.
Giannotti, John B., and Richard W. Smith. Treasury Management: A Practitioner’s Handbook.
New York: John Wiley & Sons, 1981.
Greifer, Nicholas, and Jeffery Vieceli. “Best Practices in Treasury Management.” Government
Finance Review, Vol. 16, No. 2, April 2000, p. 19.
Kuhlmann, Arkadi, F. John Mathis, and James L. Mills. Prime Cash: First Steps in Treasury
Management. New York: McGraw-HIll, Inc., 1993.
Masson, Dubos J., and David A. Wickoff. Essentials of Cash Management, 5th ed. Bethesda,
MD: Treasury Management Association, 1995.
Millar, Bill. Global Treasury Management. Business International Corporation. New York:
Harper Business, 1991.
Mulligan, Emer. “Treasury Management Organisation: An Examination of Centralised versus
Decentralised Approaches.” Irish Journal of Management. Dublin, 2001.
Teigen, Lee E. “Treasury Management: An Overview.” Business Credit, New York, July 2001.
Thurston, Charles W. “Integrating Treasury Management.” Global Finance. New York, July
2000.
Van Eijk, Marcel. “International Liquidity Management: Efficiency Through Creativity.” Spe-
cial Report, Treasury Management International. 1995, pp. 17–23.
5 • 18 INTERNATIONAL TREASURY MANAGEMENT