Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

CTP - 7th Edition > Chapter 15 - Technology in Treasury > Flashcards

Chapter 15 - Technology in Treasury Flashcards

1
Q

One of the core functions of treasury is to do what with treasury operations as it relates to other operational areas?

A

Integrate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Areas of data management that Treasury is responsible for:

(review)

A
  • Protecting financial assets
  • Compiling data from a wide array of internal and external sources
  • Sorting, analyzing, and storing information
  • Initiating and validating transactions
  • Obtaining account balancers and transaction details from external sources
  • Obtaining internal information that affects the cash flow timeline
  • Consolidating information into the cash position worksheet
  • Creating forecasts
  • Identifying, measuring, and managing risk
  • Providing data for accounting
  • Reporting information to management
  • Assisting with other areas with any treasury-related research
  • Automating as much of the collation and analysis of the above activities as possible
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Major Benefits of Spreadsheets

A

Low initial cost, ubiquity, and ease of access and use

Ideal for standalone analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Primary Downside to Bank Portals

A

They are typically limited to just one bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Greatest Advantage for ERP Systems

A

Single processing platform for all of an organization’s accounting and finance software

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disadvantages of the Treasury Module in an ERP

A

Requires more IT support
Can be much more expensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Three Types of Technology Platforms

A

Installed System
Enterprise Technology
Cloud or SAAS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Installed System

A

Installed onto the company’s server and accessible by multiple computers

Can be limited to specific department or company-wide

Usually customized to meet the needs of the client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Downside to Installed Systems

A

Difficult and more cumbersome to update

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Enterprise Technology

A

Similar to a departmental client/server environment but is expanded and typically has more processing capability to handle the overall information technology needs of an entire organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Enterprise Technology will require the existence of what?

A

A dedicated IT function to handle the overall security, backup, and information control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Advantages and Disadvantages of Enterprise Technology

A

Easy to exert control

Competing desires for new technology
Higher cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Hosted solutions are also often referred to as

A

Cloud computing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How is billing usually setup for SAAS?

A

Per-use or per-user or some combination

Billed based on what is used, unlike locally installed solutions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What does the pricing model for SAAS usually lead to?

A

Results in higher ongoing fees, but will reduce or eliminates up-front costs for new software or new hardware

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Information Security 5 Basic Elements
* Privacy
* Authentication
* Authorization
* Integrity
* Non-repudiation

A

Privacy – information is only accessible by authorized individuals
Authentication – the ability to know who is accessing information or initiating
Authorization – ability to know and control what functions an data an individual can access
Integrity – ensure a message was not modified and that stored data has not been improperly modified or deleted
Non-repudiation – inability of the sender or receiver to deny having sent or received the message or that the original is not valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Authentication 4 Basic Factors

A

Something the individual knows

Something the individual has

Something the individual is

Something the individual does

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the current standard when it comes to authentication when trying to stay secure?

A

Dual-factor authentication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Out-of-Band Authentication Controls

A

Additional steps taken outside the technology boundaries of a specific transaction

For example, a callback to a previously known number

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Encryption

A

Process of transforming information using a computer-based model to make it unreadable except by those possessing a key

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Two Basics of Information Technology that encryption addresses

A

Privacy
Non-repudiation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Public-Key Infrastructure (PKI)

A

One private key and one public key

Information encrypted using the public key can be decrypted by the private key and information decrypted using the public can be verified as coming from the private key

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Digital Signatures are tied to what?

A

The individual document and the signer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Digital Certificates

A

Tie the identity of the user (private key) to the user’s public key

May be used to authenticate the devices used to create documents or transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
A digital certificate is usually stored securely with which party?
The certificate authority
26
Digital Certificates can be thought of as what other item?
A virtual passport
27
In addition to helping enforce proper procedures, workflow management can also do what?
Provide ongoing status reports used to manage the process
28
Principle Challenges in Implementing a Dashboard
Selecting information and KPIs Identifying the source of information Automating the creation of the report
29
End-User Computing Policy
Governs how end-users will utilize the technology tools they have been given and will provide certain requirements to be met
30
In addition to an End-User Computing policy, it may also be helpful to implement what type of policy?
Treasury Systems policy
31
Client/Server Installed Solution
Run on the company’s servers to allow multiple users to access the application at any one time
32
Out-of-band authentication methods like callbacks conform to which authentication method?
Something the user has (cellphone)
33
Using a voice sample would be an example of which authentication method?
Something the individual is
34
When referencing internal transactions for a TMS, what is the test referring to?
Transactions that the TMS has generated (interest accrual, amortization, etc.)
35
TMS solutions are great ways to streamline and avoid outsourcing in order to utilize what?
In-house banking
36
Do TMSs include a system for netting receivables and payables in multilateral netting situations?
Yes
37
Cost of Ownership for Each TMS Approach * Installed Systems * SaaS Solutions * Treasury Modules
**Installed Systems** – higher up-front costs and resourcing requirements; heavy reliance on users for upgrades **SaaS Solutions** – low initial cost but higher recurring costs; TMS provider will take care of connections **Treasury Modules** – may not have all of the required functionality; very expensive to implement and upgrade
38
Two Stages of Project Management
Project Design – set out requirements Implementation – plan specifics and then monitor implementation
39
Two Key Stages in Technology Solutions Implementations
Planning Stage – identification, scheduling, and resourcing of each phase of implementation Execution Stage – achievement of all of the planned phases and tasks
40
EDI
The process of using standardized communication formats to exchange business data between two trading partners
41
What is one of the core concepts of EDI?
Acknowledgment
42
Types of EDI Acknowledgments
Functional Acknowledgment – message received and in correct format Secondary Acknowledgment – relates to the contents of the message
43
UN/EDIFACT | (and where is it used?)
Set of internationally agreed-upon standards, directories, and guidelines developed by the UN Used widely in Europe and Asia
44
Is UN/EDIFACT compatible with ASC X12 EDI?
Not, but translation software exists
45
Intended use cases for ISO 20022
Standard for financial services industry Used for transmitting information related to securities, payments, card transactions, international trade, and foreign exchange transactions
46
ISO BSB | (What did it become and what is it compatible with?)
Bank Services Billing Moved to ISO 20022 and developed as part of the camt.086 message specifications Compatible with the AFP Service Codes
47
Two Types of File Exchanges for SWIFT
**Bulk File Transfer** – FileAct (nonstandard format) **Message Exchange** – MT messages; predefined messages that provide specific information
48
ASC X12 Transaction Sets
Electronic equivalents of specific paper business documents or forms that include specific rules governing the format and data content
49
BTRS
Communication protocol designed to increase standardization and improve BAI2
50
Bank Account Management
Management of the various facets of an organization’s relationship with its banks Opening/closing accounts, managing signatories, documentation, etc.
51
eBAM Benefits
Eliminates the cost of creating, moving, reviewing, and storing paper Streamlining the process of managing geographically dispersed information Improving the ability the make quick changes Strengthening internal control and improving auditing and management reporting
52
What is the biggest hurdle for using eBAM?
You must first be onboarded with the bank, which requires physical documents
53
What do the primary mobile banking applications in the treasury area focus on?
Information transmittal and transaction authorization
54
Major barriers to widespread acceptance of corporate mobile banking
Security requirements for the network and mobile devices Technology issues related to the increase amount and complexity of transactions Need to accommodate multiple users for a given bank account or relationship
55
Application Programming Interfaces (APIs)
Set of routines, protocols, and tools for building software applications Software gateways between programs, allowing data in one program to be used in another
56
Open Banking
Financial services model that enables customers to securely share their financial data with third-party providers
57
Distributed Ledger Technology (Blockchain)
Creates transaction records that are linked and distributed across all participating network computers
58
Two examples of uses for distributed ledger technology
Payments and currency (Bitcoin) Trade (letters of credit)
59
The advent of widespread instant payments will result in what?
Treasurers will need to reassess their liquidity needs and shift towards intraday cash positioning
60
Two key areas of payment innovation
Improved Efficiency for Cross-Border Payments – streamline processing of cross-border payments, P27 and linking Singapore’s PayNow with Thailand’s PromptPay Request-to-Pay – message is sent to payor requesting payment
61
Are bank billing codes considered a form of electronic communication standards?
Yes
62
What is ISO Standard 9735 also known as?
UN/EDIFACT
63
What is ISO 20022? A. A set of internationally agreed-upon standards, directories, and guidelines for electronic exchange of data B. An XML-based messaging standard for the financial services industry C. Primarily a messaging system, it is also responsible for helping to develop standards regarding the types of messages that are carried across various telecommunications networks D. An international standard electronic format used to transmit bank balance, service charge, and other information from a bank to commercial customers or other banks | (explain what each of the other answers relates to)
A - UN/EDIFACT B - ISO 20022 C - SWIFT D - Bank Billing Codes
64
How is non-repudiation applicable to encryption?
By decrypting the message, you have confirmed receipt
65
Explain the primary purpose of each: * ISO 20022 * UN/EDIFACT * BTRS * ASC X12
**BTRS** is a communication protocol designed to increase standardization of and improve upon BAI2, a widely used, domestic US format for information reporting of account balances, transactions, lockbox detail, and controlled disbursement detail. **ISO 20022** is an XML-based messaging standard for the financial services industry, whose intended use is transmitting information related to securities, payments, card payment transactions, international trade, and foreign exchange transactions. **UN/EDIFACT** is a set of internationally agreed-upon standards, directories, and guidelines for electronic exchange of data. **The Accredited Standards Committee (ASC) X12** of the American National Standards Institute (ANSI) is the coordinating body that develops cross-industry EDI message standards in the United States.
66
Why is understanding the users of the dashboard not relevant for the implementation phase of a dashboard?
The users of the dashboard would have been decided on in the design phase
67
Besides determining KPIs and how information will be sourced, what is the third key focus area when implementing a dashboard?
How the dashboard will be automated so it can present information in a timely manner

CTP - 7th Edition (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions