Treasury Risk & Counterparty Exposure Framework

How to use this framework: For each question, score 2 if fully in place, 1 if partially in place, and 0 if not in place. Total your score across all 16 questions (maximum 32 points) and use the scoring guide to identify your maturity band. Use the lowest-scoring areas to prioritise treasury risk improvements.

Assess concentration risk, counterparty credit quality and liquidity risk across your cash and investment holdings. Score against treasury best practice for growth-stage fintechs.

Area 1: Bank Counterparty Risk

Q1. All banking institutions assessed for credit quality

2 — Fully in place: Credit ratings or financial strength indicators for each banking counterparty are reviewed at least annually. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q2. No single bank holds more than 75% of total cash

2 — Fully in place: Concentration is either below 75%, or a board-approved exception exists with documented risk acknowledgement. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q3. FSCS deposit protection limit understood

2 — Fully in place: The £85,000 FSCS limit is understood; balances above this threshold are acknowledged as unsecured exposure. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q4. Contingency bank account at a different institution is operational

2 — Fully in place: A backup bank account at a separate institution is maintained, funded, and regularly tested for accessibility. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Area 2: Investment Portfolio Risk

Q5. Treasury investment policy exists with documented constraints

2 — Fully in place: Permitted instruments, maximum maturities, and minimum credit rating requirements are documented and board-approved. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q6. Money market funds or short-term deposits used for surplus cash

2 — Fully in place: Cash above operational requirements is deployed into low-risk, short-duration instruments — yield and risk are balanced consciously. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q7. No speculative or illiquid investments held without board approval

2 — Fully in place: The corporate treasury holds no speculative or illiquid positions unless explicitly authorised by the board with documented rationale. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q8. Mark-to-market valuation performed monthly and reported to board

2 — Fully in place: Non-cash instruments are valued at market monthly and the result is included in the board report. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Area 3: Liquidity Risk

Q9. Minimum operational cash floor defined and board-approved

2 — Fully in place: A formal minimum cash floor exists, is board-approved, and is monitored monthly against actual balances. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q10. Liquidity stress test conducted under three adverse scenarios

2 — Fully in place: Time to deplete operational reserves has been modelled under at least three adverse scenarios and presented to the board. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q11. All cash accessible within 5 business days without penalty

2 — Fully in place: The full cash balance can be accessed within five business days if needed for operations — no material penalties or lock-in. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q12. Revolving credit facility or emergency line available with known terms

2 — Fully in place: A committed credit facility, overdraft, or emergency line is in place and its terms — limits, covenants, cost — are known and documented. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Area 4: Controls & Governance

Q13. Treasury policy reviewed and board-approved at least annually

2 — Fully in place: The treasury policy is on the board agenda at least once per year for formal review and re-approval. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q14. Dual authorisation required for cash movements above threshold

2 — Fully in place: All payments above a defined threshold require two authorisers and are logged in the accounting system. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q15. Monthly treasury report presented to CFO or board

2 — Fully in place: A report showing cash by institution, yield earned, and maturity profile is produced and presented monthly. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Q16. External treasury review conducted every two years

2 — Fully in place: An independent assessment of treasury policy and execution has been conducted within the last two years. 1 — Partially in place: partially in place or informally applied 0 — Not in place: not in place

Your Score

0 / 32

Answer questions above to see your result

Next step: Identify the area where your score is lowest. Questions scored 0 are your highest-priority actions. Book a discovery call to discuss your results with a fractional CFO and build a clear remediation plan.

Treasury Risk & Counterparty Exposure Framework

Area 1: Bank Counterparty Risk

Area 1: Bank Counterparty Risk

Area 2: Investment Portfolio Risk

Area 3: Liquidity Risk

Area 4: Controls & Governance

Discuss your results with a fractional CFO.Book a discovery call.

Discuss your results with a fractional CFO.
Book a discovery call.