The right information, at the right time, effectively reported, enabled the hedging of the fluctuation's impact. Performance like that gets attention. The lockbox calculations, however, usually do not consider the full component of finance's time and occupancy costs, as well as all of the comprehensive finance activities involved in actually issuing and collecting the remittance. It's in these types of situations that benchmarking really pays off. Reasonable risk factors are identified and mitigated.
Risk management is perhaps the hottest topic today in treasury and finance circles.
RTCs, which actually perform the netting, pooling, re-invoicing and currency risk management functions, add a layer of cost. However, they do provide an effective interim analysis stop on the way to centralized management decisions. An RTC only should be established if the CBA case is overwhelming. Otherwise, central finance and treasury management should conduct the sensitivity analysis and be the keeper of the risk management profile. The time cycle prefers analysis to initiating, and tracking transactions.