Case Study Liquid Edge Mastering Investments.pdf

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1. EYCAFTA
Case Study
2024

2. Liquid Edge: Mastering
Investments

3. We are extremely excited to welcome you to the EY CAFTA Case Championship 2024!
EY CAFTA Case study championship is the by-product of a strong conviction of EY’s financial upskilling mission. It aims to give students an opportunity to hone their skills in
business and consulting, be innovative and analytical about solving the every-day complex business problem statements and showcase their skills to the wide network of
industry experts.
This is your opportunity to sharpen and prove your skills to the esteemed panel of carefully selected judges from industry, acquire unique industry insight through mentorship
sessions from the consulting experts and present your solution to the most impactful audience.
We are looking for the leaders of tomorrow by reviewing the talents of today!
Prerequisite: Before starting the below stated case study, we hope you have thoroughly brushed yourself with the learning material and videos shared with you for the relevant
stream you had applied for.
This case study revolves around “Liquid Edge: Mastering Investments” emphasizes the critical importance of comprehensive investment education in navigating the
complexities of financial markets. It highlights how the program integrates theoretical knowledge with practical applications to provide participants with a robust
understanding of investment principles, strategies, and market dynamics. By focusing on risk management, portfolio optimization, and informed decision-making, "Liquid
Edge" aims to empower individuals to achieve their financial goals and excel in the competitive field of investments. The case study underscores the program's commitment
to fostering financial literacy, strategic thinking, and a disciplined approach to mastering investments.
Your final submission must be submitted by 16th June.
It is also mandatory for you to submit any additional working/dashboard/excel worksheet as annexures to the case study solution.
(The format of submitting the case study solution will be communicated with you shortly in a separate thread.) We wish you all the best and look forward to your submissions

4. Rules and Regulations
An overall spirit of
sportsmanship is
expected from all
participants throughout
the duration
of the competition
1
Any violation of the
rules may result in
disqualification of the
team. Any decision of
disqualification is final.
2
Please adhere to the
deadlines. No extension
will be given
4
Only one solution can
be submitted per
participant / team
3
The submissions are
final, and no
modifications are
allowed post
submission the
duration
5
Feel free to use all
resources available to you
in order to research and
develop the solution to the
problem statements.
6
Failure to cite sources
will be considered
plagiarism and will be
liable for disqualification
8
All work submitted must
represent your / your team's
own words, ideas, and work.
Using public material is
allowed, but you are
required to cite the sources.
7

5. Liquid Edge: Mastering Investments aims to equip individuals with the knowledge and skills necessary to
excel in the dynamic world of investments. By providing comprehensive insights into various investment
strategies, market trends, and financial instruments, the program seeks to empower participants to make
informed decisions, optimize their portfolios, and achieve their financial goals. With a focus on both
theoretical foundations and practical applications, Liquid Edge fosters a deep understanding of
investment principles, risk management, and market analysis, ultimately helping individuals master the
art and science of investing.

6. Case Study:
XYZ Corporation is a global conglomerate with operations spanning
multiple industries and geographies. The company's treasury department
faces challenges pertaining to
1.Efficient management of cash flows
2.Processing payments cost-effectively
3.Mitigating financial risks.
4.Managing global and local banking relationships across multiple regions
To address these challenges, the CFO of XYZ Corporation is considering
implementing a cash forecasting system, revisit its banking relationships,
bank account management establishing a payment factory, and creating
an in-house bank. To incorporate this, he/she must present a strong case
to the board for the need for these changes to address the challenges.
1. Cash Forecasting:
XYZ Corporation recognizes the importance of accurate cash forecasting
to optimize liquidity management and support strategic decision-making.
The company aims to implement a robust cash forecasting system that
leverages historical data, statistical models, and business inputs.
2. Banking relationship management
XYZ Corporation plans to revisit its existing banking relationships both at a
global and regional level and wants to establish a mix of core banking and
local banking relationships
3. Payment Factory:
XYZ Corporation intends to streamline its payment processes by
implementing a payment factory. The payment factory will centralize
payment initiation, approval, and execution across subsidiaries and
regions, aiming to improve efficiency and reduce costs.
4. In-House Bank (IHB):
XYZ Corporation plans to establish an in-house bank to centralize treasury
operations and optimize cash management. The IHB will consolidate cash
balances, facilitate intercompany transactions, and manage FX risk more
effectively.

7. Questions:
As the CFO you need to present a business case to the Board addressing the below
questions.
1.What are the potential benefits of implementing a cash forecasting system for XYZ
Corporation?
2.How can XYZ Corporation ensure the accuracy and reliability of its cash forecasts?
3.What challenges might XYZ Corporation encounter during the implementation of the
cash forecasting system, and how can they be addressed?
4.How will the banking relationship assessment benefit XYZ Corporation? How will this
ensure there is no impact on the BAU (Business As Usual) activities while reducing the
burden of having to maintain multiple banking relationships?
5.What are the key advantages of establishing a payment factory for XYZ Corporation?
6.How can XYZ Corporation ensure compliance with regulatory requirements when
implementing the payment factory?
7.What factors should XYZ Corporation consider when selecting a payment factory
solution and integrating it into its existing infrastructure?
8.What are the primary objectives of establishing an in-house bank for XYZ
Corporation?
9.How can the in-house bank contribute to improving XYZ Corporation's cash
management practices?
10.What challenges might XYZ Corporation face in implementing the in-house bank,
and how can they be mitigated?
11.What is the approximate timeline we are looking to incorporate the above changes?
(Please note: You are required to provide activity-wise timelines. These timelines can
be provided in the form of a monthly plan)
12.Who would be the key stakeholders tagged to each activity? (E.g. – Treasury,
Accounts Payable, FP&A etc.)
13.What does the future state of the XYZ Corporation? Here, you are required to
provide a closing statement summarizing how this change would impact XYZ
Corporation.
If there are any key considerations (e.g., careful planning, budget etc.) that XYZ
Corporation needs to keep in mind while ensuring successful implementation, you may
note that as well.

8. 27 May 2024 EY in India - Statement of credentialsPage 8
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