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Driving efficiency through the management of risks: a bank ’s perspective
THE POWER TO HELP YOU
SUCCEED
Dennis Bauer, MD Barclaycard Commercial Payments
Ivan Rogers, MD Public Sector, Barclays Capital
Mike Walters, Head of Corporate Payments, Barclays
Corporate

• Barclays Group is delighted to be presenting to the GFP today
•
We provide financial advice and services to a range of public sector clients through
3 business units
Barclaycard Commercial Barclays Corporate Barclays Capital
• Payment risks
- working capital
- fraud
- control
• Payment risks
• Supplier risks
• Liquidity risks
• Interest rate risks
• Foreign exchange rate risks
• Commodities risks
• Liquidity risks
• In today’s presentation, we focus on payment, supplier and liquidity risks; but would be pleased to discuss other topics during the conference or at future sessions
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What are you hoping to get out of today's session?
1. Understand about procurement efficiencies
9%
2. Understand how I can work with other finance professionals
3%
3. Understand how to manage risks more effectively in Public Sector
81%
4. Networking opportunities
7%

Control
Ensure that you have the controls in place to drive adherence to policy
Transparency
Inefficiency
4
Leverage
Buying Power
Maximise
Working
Capital
Ensure that you provide visibility into spending to demonstrate policy compliance
Eliminate manual workarounds to deliver more with less
Optimise supplier contracts, centralise procurement, deliver consistent pricing
Use of cash for front-line service delivery

5

Which of these needs and challenges is most important to you today?
1. Adherence to organisational policies
11%
2. Transparency and visibility of spend
18%
3. Driving cost savings through more efficient processes
56%
4. Optimising supplier contracts
8%
5. Maximising working capital
0%
6. Other
7%

High
7
Low
Low
Traditionally
P Card volume suppliers
Traditionally
BACS unmanaged suppliers
Traditionally
EDI invoice financing strategic suppliers
Payment value High

Improved cash flow and payment solutions that support prompt payment to suppliers working
Capital Mgt.
process efficiency
Introducing new tools to eliminate paper and manual processes or easy integration into
ERP, emarket places, shared services to maximise ROI
Supplier enablement and visibility of spend to enable maximum value from supplier effective sourcing employee convenience enhanced control
Diverse payment solutions with wide acceptance
Providing control at POS and driving policy compliance and providing auditing capability at the back end

There are a number of payment solutions emerging that provide greater control and flexibility to drive additional savings
High
Total Spend Management
9
Low
Low
P Card
Prepaid volume suppliers
Single Use
Buyer Initiated
Payments unmanaged suppliers
EDI invoice financing strategic suppliers
Payment value High

• Transaction Management
• Working Capital
• Liquidity Management
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... priority depends on the needs of YOUR organisation
... the solution to meet your objectives will be a combination of a number of different cash management techniques, products and services i.e. there is no “One size fits all”

Working Capital
AND Liquidity
EXPENDITURE MANAGEMENT
Transaction
Management
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SUPPLY CHAIN MANAGEMENT
REVENUE MANAGEMENT

• The drive for integration and the creation of Shared Service Centre’s
(SSC)
• Matching payment types to value requirements
• Increasing awareness and requirement to manage systemic risks
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…how you move money makes a difference to your risk profile

• Maximising Terms of Trade
Priority and obligation
Maximising the value in the supply chain
• Certainty of Receipt
Credit risk
Jurisdictional risk
Insurance
• Contracts
Procurement process
Contract fulfilment and performance risk
…protecting and identifying hidden value
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• Increasing global regulation of banks liquidity – i.e. Basel III
• FSA ‘Liquidity Buffer’ the increasing importance of tenor
• Security focus
• Liquidity flexibility
• Yield trade off
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• Rapidly changing competitive landscape
• End of cheque 2018?
• The importance of Channel capability
• Data versus information
• Development of EIPP Solutions
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•
•
•

1. Risk and Efficiency
“List and discuss the risks your organisation faces when driving for organisational efficiencies. How do you prioritise these risks and do you have the relevant tools to manage them”
2. Risk and Commercialisation
“As you know there is an increased need for organisations to remain professional and commercially viable within the Public Sector. Are there any risks that your organisation face in trying to achieve this and have you got the relevant tools and skills within your organisation to deal with them effectively?”
3. Risk and the Policy Environment
“What do you rank as the 3 top risks in the policy environment for your finance department and what strategies should be employed to mitigate and manage them?”
4. Risk and Financial Strategy
“ What are the top 5 risks that affect the formation and implementation of your organisations financial strategy?
What strategies for dealing with constraints do you employ (or would you like to employ) and what support do you require to help manage them?”
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Driving efficiency through the management of risks: a bank ’s perspective
THE POWER TO HELP YOU
SUCCEED
Dennis Bauer, MD Barclaycard Commercial Payments
Ivan Rogers, MD Public Sector, Barclays Capital
Mike Walters, Head of Corporate Payments, Barclays
Corporate