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Is this the ultimate structure for achieving global cash control?

Global cash management at Statoil, the international energy company with operations in 37 countries, is vast and complex:

Source & Copyright©2012 -  - Statoil

Patrick Pots, Cash Treasury Manager and Tor Stian Kjøllesdal, Head of Financial Supply Chain at Statoiiol explained in their talk at Eurofinance Conference in Monaco in September how they have set up a set of integrated processes, systems and operations, including:

  • bank account management which involves centralised process and control covering the Share Service Centre (SSC), head of cash management signing all bank agreements and bank account requests, a service level agreement with main banks, a central database of bank accounts held in the ERP, and a standard process for verifying bank charges and fees
  • an in-house bank which covers internal FX and liquidity, the payment factory, cash flow forecasting and external liquidity management. This delivers real financial value, cuts costs, reduces risks and acts as a central pool of expertise
  • a payment factory which connects direct from the ERP based system via a service bureau to SWIFT using XML/FIN messages
  • SSC which is process based organisations supporting both the sales and procurement process in Statoil. Within the SSC, Statoil has a specific unit - which includes the central accounts payable, and accounts receivable operations plus payment operations - in order to improve focus on cash control.

Patrick and Tor Stian wrapped up their presentation with this figure:

Source & Copyright©2012 -  Statoil


Is this the ultimate structure for global cash control? It looks pretty close to me, this could be the model to aim for. (Patrick and Tor Stian [and Jack] would welcome all suggestions for improvement.)


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Cash & Liquidity Management
Global Cash & Liquidity Management

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