IGTA Journal - Autumn 2017

good quality. For businesses they are strategic tools for lowering costs, increasing productivity and reducing wastage and mistakes. They are the symbol of good management, with companies certified in one field or another. A counterparty, customer or stakeholder may even require that the company should be "ISO-certified" in this field or that. They pave the way to new markets, and lay down the rules of the game fairly, enabling you to demonstrate that you are "best in class" and right up to date with standards that are regarded as "best practice". Organisations and other bodies, regardless of size, are confronted with a range of factors and influences that make their future and their results uncertain. The question of knowing when and if the business can achieve its objectives therefore becomes crucial. This element of uncertainty that affects every business is nothing more or less than what is commonly called "risk". Because all business activities, even outside treasury management, involve risk-taking. We manage risks by identifying them, by analysing them, by assessing whether they need appropriate handling to mitigate them or avert them, or even to decide whether they can be borne as they stand. After following this process, we have to alert the stakeholders of how we are monitoring risk, how we are handling it and what controls we are putting in place to track and contain it. The aim of this standard is nothing less than setting out a systematic and logical approach to be applied to risk management in general and financial risks in particular. Why not govern risk management in just the same way as we manage a whole host of other processes in a documented and organised manner. Risk has had its own standard for a number of years; but this standard has changed, and today it has become the authority that we have to follow. Even though risk management practice may have come a long way over the years, implementing it by applying a rigid set of instructions is not a good idea. Using a clear framework increases the assurance that management will be efficient, effective, coherent and appropriate. This is where ERM (Enterprise Risk Management) and treasury management come into their own. Why not opt for ISO 31000 in your treasury management process? IGTA eJournal | Autumn 2017 | 34