The German Association of Corporate Treasurers (VDT) has published numerous sets of guidelines in recent years. In order to keep pace with developments in technical, procedural and organisational areas, we aim to revise these guidelines step by step within the individual specialist departments. In the area of risk management, we also aim to broaden the previously stricter regulatory focus by adopting a holistic view of the management of (financial) risks.

The publication you now hold in your hands is a practical guide to the entire spectrum of financial risk management within corporate treasury. It describes how financial risks within a company can be systematically identified, assessed, managed and monitored. The guide begins by setting out its aim, purpose and scope. Building on this, it situates financial risk management within the broader context of corporate governance and makes it clear that treasury risks should not be viewed in isolation, but must be closely integrated with enterprise risk management as well as limit and control systems.

In the next step, the guide sets out the conceptual framework for financial risk management processes. It addresses legal, regulatory and business-critical principles, as well as requirements for consistent risk identification, assessment and management. Particular emphasis is placed on the integration of treasury risks into company-wide governance structures, on compliance with regulatory requirements, and on the transparent documentation and traceability of the methods and decisions employed.

At the heart of the guide is a systematic presentation of the key risk types and the associated processes. For market price risks – in particular foreign exchange, interest rate and commodity risks – the individual steps, from risk identification through quantification and assessment to risk management, as well as ongoing monitoring and control, are described in a structured manner. Counterparty and liquidity risks are treated in the same way. Finally, an integrated overview is presented which brings together the risks across the board and supports a portfolio-based approach to consistent management.

This guide was drawn up by members of the Risk Management specialist department and supplements „The Guiding Principles of Corporate Treasury“ from a functional and operational perspective of financial risk management.

Die deutsche Fassung finden Sie unter diesem Link.

Disclaimer on AI-Assisted Translation

This publication has been translated from German into English using artificial intelligence. The translated version has not been reviewed linguistically by a native speaker or a subject-matter expert and has been published in its automatically generated form.

Please note that this is therefore a machine translation, which may deviate from customary professional or linguistic standards, particularly with regard to technical terminology, industry-specific expressions, or linguistic nuances.

The Verband Deutscher Treasurer e.V. assumes no responsibility for the accuracy or precision of the translation and cannot be held liable for any misunderstandings or errors arising from the use of this English version.