1. Risk Management in Treasury Operations
Group 3
Risk Management in Treasury Operations
Azerbaijan, Bulgaria, Croatia, Georgia, Hungary, Serbia, Turkey
Vienna
May 31st,2017

2. 1. Is risk management part of regular responsibilities of any of the functions / units of the treasury in your country?
Azerbaijan
Bulgaria
Croatia
Georgia
Hungary
Serbia
Turkey
YES/NO
Appropriation Control N Y
Payment Processing and Revenue (Collection) Recording and Reporting
Oversight of Bank Accounts and Basic Cash Management
Assets and Liability Management
Financial Reporting

3. Is risk management part of regular responsibilities of any of the functions / units of the treasury in your country?
(continuation)
Azerbaijan
Bulgaria
Croatia
Georgia
Hungary
Serbia
Turkey
Accounting and Internal Control Policies N Y
In-year budget execution reporting
Other – please Specify
Payroll calculation
n/a
Baby bonds Mng

4. 2. Was formal risk analysis / assessment undertaken for any of the treasury functions / processes? If yes, specify the functions / processes and context of the analysis. Is this a regular / periodic activity or a one – time undertaking?
Azerbaijan
Bulgaria
Croatia
Georgia
Hungary
Serbia
Turkey
Y/N
R/OT
Y/ N
R/ OT
Y/ N
Appropriation Control N Y R Ot OT
Payment Processing and Revenue (Collection) Recording and Reporting
Oversight of Bank Accounts and Basic Cash Management y ot
Assets and Liability Management

5. 2. Was formal risk analysis / assessment undertaken for any of the treasury functions / processes? If yes, specify the functions / processes and context of the analysis. Is this a regular / periodic activity or a one – time undertaking? (continuation)
Azerbaijan
Bulgaria
Croatia
Georgia
Hungary
Serbia
Turkey
Y/N
R/OT
Y/ N
R/ OT
Y/ N
Financial Reporting N Y R Ot
Accounting and Internal Control Policies
In-year budget execution reporting
ICT
maybe y
Other – budget preparation
n/a
Other – please Specify

6. 3. Does your treasury have internal documents / methodology that define approaches to risk management? If yes, specify the documents.
Azerbaijan
Bulgaria
Croatia
Georgia
Hungary
Serbia
Turkey
YES/NO N Y 1
Risk mng Strategy
Risk Mng Methodology which is the basis for the Risk register
Risk Mng Manuals
Internal controls guideline 2
Internal control methodology approved by the Minister of finance
Instruction for preparation of strategic plans
Internal control manuals
Working principles for the internal controls and risk mng committee; legislation on principles on debt and risk mng 3
Integrity manual
Risk Mng guideline 4
* Internal control methodology approved by the Minister of finance
Business continuity mng guidelines 5
Strategic benchmarks guideline (confidential)

7. BENEFITS/RISKS/MITIGATION of RISKS
Do you consider that the concept of the ‘green corridor’ could work in your countries?
BENEFITS/RISKS/MITIGATION of RISKS
Azerbaijan: benefits – frees people to get assigned to different tasks, risks are part of taking new steps, could be mitigated by selectively/randomly checking even small amount of payments form time to time
Bulgaria: one of benefits is we avoid human element, process will get cheaper (less people will be assigned to control payments), RISKS – technical issues, IT security, fraud for budgetary side, Mitigation – to set appropriate control environment and activities
Georgia – appropriation control can be handled by the system, and cannot be changed on purpose but IT interference. Fraud cannot be completely avoided but compared to overall budget they do not contribute to any meaningful % of the budget. Considering that “green corridor” is only dedicated to a well defined low risk payments and industries.

8. BENEFITS/RISKS/MITIGATION of RISKS (continuation)
Do you consider that the concept of the ‘green corridor’ could work in your countries?
BENEFITS/RISKS/MITIGATION of RISKS (continuation)
Croatia – invoice approval system is built in such way that switching to “green corridor” won’t make difference for them since their system is in a way a different type of “green corridor”.
Hungary – is introducing new system and it is believed that they would benefit from “green corridor” that it would take required changes to their Risk Mng System framework.
Turkey – all the controls points are conducted before invoices enter Treaury’s system therefore no need for “green corridor” т