Driving efficiency through the management of risks: a bank ’ s perspective

1. 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

2. Introduction 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 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 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

3. How to use voting technology • When instructed, press the number button(s) that correspond with your selected answer • Check your response in the display screen on the keypad • There is no enter key required • If you want to change your response, use the ‘c’ key to clear and enter your new answer

4. Interactive Question What are you hoping to get out of today's session?

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

6. Leeds City Council case study

7. Interactive Question Which of these needs and challenges is most important to you today?

8. Purchasing card was introduced to tackle high volume, low value payments High Management focus Traditionally EDI invoice financing Traditionally P Card Traditionally BACS Low Payment value Low High strategic suppliers volume suppliers unmanaged suppliers

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

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

11. Cash Management Transaction Management Working Capital Liquidity Management ... 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”

12. Cash Management Working Capital AND Liquidity EXPENDITURE MANAGEMENT SUPPLY CHAIN MANAGEMENT Transaction Management REVENUE MANAGEMENT

13. Transaction 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 …how you move money makes a difference to your risk profile

14. Working Capital 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

15. Liquidity Management 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

16. What happens next in Cash Management Rapidly changing competitive landscape End of cheque 2018? The importance of Channel capability Data versus information Development of EIPP Solutions

17. The workshop • Each table will be given 1 of 4 discussion topics • Discuss the topic on your table for 20 minutes • Present your main point from the discussion, back to the workshop

18. Workshop discussion titles 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?” 17

19. 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 18