Rethinking Old Concepts for A New Age

Treasury Revitalized

Bastion Currency Management (BCM) provides Treasury Services & Solutions geared specifically to the challenges SMEs have with managing their treasury operations, even though they are usually bundled into accounting functions.

We accomplish this by working with you to isolate and define your company's treasury requirements in a highly competent, consultative capacity. This allows you to leverage our expertise and unconflicted advice to ensure your financial operations positively affect your bottom line.

A company’s financial management is an integral part of its business strategy and not a separate set of decisions made without regard to the company’s other strategies (e.g. sales, production, etc.). As a Treasurer is essentially a risk management expert, our focus is on the risk components of Treasury Management, and it's fair to say that risk management concepts are complex, very often unintuitive and they are most certainly not at the forefront of most people's daily jobs.

Our experience is that most companies tend to focus on financial products rather than deeply understanding how various risks affect their company's overall strategy, and their natural approach to risk management is way after the fact which is inherently counterproductive. The decisions have already been made, and then it becomes a mad scramble to gather exposures and figure out how to hedge them if at all.

We believe that the best process is to start further upstream before decisions are actually made, and then we can assess how a number of risk factors impact your exposures. That way, exposure impact can at least be a consideration, and walking into the situation with your eyes open is preferable to being blindsided when things start to go sideways.

Unlike most consultants, we don't view your Treasury operations and financial risks in isolation. We have an unorthodox approach—we take a bottom up approach to understanding your Treasury and then work outward from you financial risks to see how these affect other areas of your Treasury such as working capital and cash management, and then your overall company and its objectives.

Only then can we start strategizing how to best achieve operational efficiencies and manage risks to increase cash flows and boost profitability. We appreciate treasury can be a complicated area of your financial operations, so we make sure to take the time, and use accessible, non-technical language to walk you through our process.

We mainly deal with SMEs, not multi-national corporations, so we offer our services at down-to-earth prices. We understand the Treasury challenges, needs and budget constraints SMEs face because we are one, too, so we meticulously designed our services and processes to zero in on only key areas that offer you the highest benefit for the lowest total cost.

This means we first focus on your currency and interest rate risks to measure and map out their effect on your business. In so doing, we also take note of what other enhancements you can make to your Treasury that provide value without causing undue implementation costs and challenges. The nominal investment in our services is far outweighed by the substantial ROI, increased operational efficiencies, and a payback period measured in months, not years!

Does your Foreign Exchange Risk Management (FXRM) resemble the results of our 2019 SME FX Survey1? If so, you may find substantial benefits from having us perform a Strategic Treasury Effectiveness Review:
  • Do not hedge FX risk at all

  • Non-hedgers: lack of internal resources, complexity, perceived riskiness2

  • Hedgers: protect margins, reduce variability in cash flows2

  • Do not measure actual/forecast FX exposures & rates against benchmarks to evaluate gains/losses, effectiveness of strategy and risk reduction

  • Do not have a formal Treasury Policy3

  • Do not know how a 1% rate move affects their profit margins

  • Do not set FX target/budget rates based on actual FX rates

  • Mainly rely upon their FX provider for advice and hedging solutions

  • No capability to internally verify/value quoted forward, swap or options prices

  • Do not know the sales margin their FX provider charges4

  • Have never performed a Transaction Cost Analysis on fees

1Phone survey conducted by BCM of 160 Canadian SMEs with annual FX needs ranging from USD $240,000 to USD $100,000,000. Aggregate (%) results are rounded to nearest whole number.
2When asked their reason for hedging or not hedging. 100% of respondents in each category mentioned at least one of these reasons.
3The breakdown of respondents who do not have a Treasury/FX policy were unfamiliar with the term (79.22%), scope and breadth of analysis involved was too daunting (5.19%), hired a consultant to draw one up, but never enacted due to complications in implementation and monitoring (6.49%), other (9.1%).
4Of those who responded "Yes" (only 12.5% of the total respondents), 60% commented being told "market rates" (i.e., interbank rates with no markup) and deal with a broker, and 40% responded that they knew the sales markup they were being charged, but had never verified it for actual compliance.

Our Mission

Our Risk Based Approach: A Penny Saved Is A Penny Earned

Treasury Management is very much the business of every importer and exporter despite many thinking otherwise. If undertaken with a common sense business approach, it can even add to the bottom-line instead of constantly subtracting from it. Our goal is to maximize your returns and minimize any potential losses by applying these principles in a disciplined and pragmatic process. We rely on facts, not speculation to assess and institute a robust risk management program that offers you full visibility and predictability into your cash flows, yet strives to capture a positive return as well.

Bastion Currency Management Advantages

Why Choose Us

The benefits of retaining professional Treasury Advisors are as many as they are varied and offer benefits for every corporation; whether it be the cost conscious CFO, the risk seeking entrepreneur, or the efficiency minded owner.

  • Our services are fee based and our main income is derived from providing strategic advice and services through consultant contracts and retainers. We do not receive transaction commission from clients meaning we are 100% unconflicted and free to focus exclusively on your needs to your sole benefit
  • Maximizing efficiencies to reduce your time spent on a small, but very time consuming and vital area of your business
  • Increase competitiveness and identify target areas of risk to be managed through our comprehensive business analysis (transaction cost analysis, sensitivity analysis, etc.)
  • All strategies are structured to reduce transactional costs, participate in positive currency movements and protect against loss
  • Access to a range of products and currencies through our unique relationships and the ability to use your current liquidity partners
  • Geared exposure when looking for an edge
Free Consultation

We Are Different

  • Economies of Scale

    Hiring a dedicated Treasury Specialist with robust financial market experience is an expensive, difficult endeavour and not economical for most SMEs given the cost and the workload would almost never justify a full-time, dedicated Treasury professional. Yet you can enjoy all the benefits of having your own "on staff" Treasury consultant, for a fraction of the cost by engaging an external and independent provider of Treasury solutions such as BCM. Our experience and connections in financial markets, and the bundling of client trades into a "book" of business gives us pricing power meaning that you will gain access to rates, fees and spreads that were otherwise unattainable due to our unique relationships with a number of FX providers and the ability to have them bid for our aggregated "books".

  • Lock Down Your Risk

    Sourcing supplies and revenues priced in foreign currencies involves an inherent FX risk, and most businesses know the risk exists, but that is not the same as understanding its impact on your profits as most companies can't break out the currency impact on their income statements by using a constant currency approach. We help you with actionable risk management guidance and hedging strategy ideas to measure your FX risk and manage it.

  • Trader Expertise

    Each client can receive access to our professional, trading expertise at their convenience. We actively analyze a multitude of foreign exchange rates, ancillary markets and utilize a number of proprietary trading systems & algorithms in order to efficiently help you target a price level according to your own risk tolerance, goals and needs.

If you want us to help you unlock your Treasury's ROI to stop missing out on all the opportunities to improve margins and find cash flow, then check availability for scheduling your free Treasury Audit

Free Audit