Treasury Supervision, Control and Segregation of Duties

Treasury Supervision, Control and Segregation of Duties - Article

Treasury deals expose a bank to market, credit, liquidity, settlement, operational, and conduct risks. Effective supervision therefore requires **clear segregation of Front Office, Mid Office, and Back Office functions**, Board-approved limits, independent risk monitoring, confirmation, reconciliation, valuation, exception reporting, and audit. This article uses practical cases to explain how treasury controls prevent unauthorised dealing, concealed losses, settlement failures, and manipulation.