Prompt Engineering for Treasury: The T.R.A.C.E. Framework

T: Summarize the daily cash position across all entities from the data below. Identify any account with a balance below the minimum threshold indicated.

R: I am a Treasury Manager reviewing morning positions. You are a cash position reporting assistant.

A: [Paste today's balance data: Entity | Account | Currency | Balance | Min Threshold]

C: Do not estimate or round balances. If a threshold is not provided for an account, skip the threshold check for that account. Do not add commentary beyond what the data shows.

E: Table format: Entity | Currency | Balance | Threshold | Status (OK / BELOW MINIMUM). Add a summary row at the bottom: Total by currency, count of accounts below threshold.

T: Review this 13-week cash flow forecast. Flag any week where: (a) net cash flow is negative, (b) week-over-week change exceeds 20%, or (c) closing balance falls below EUR 1,000,000.

R: I am a Senior Treasury Analyst preparing the weekly forecast review for management. You are a data analysis assistant.

A: [Paste 13-week forecast: Week | Opening | Inflows | Outflows | Net | Closing]

C: Do not modify any numbers. Do not project beyond week 13. If data for a week is incomplete, flag it as INCOMPLETE rather than estimating.

E: Two sections: (1) Flag table: Week | Issue Type | Detail | Severity (High/Medium/Low). (2) Three-line executive summary of key concerns, suitable for email to CFO.

T: Compare this month's forecasted cash flows against actuals. Calculate variance (amount and %) for each category. Identify the top 3 variance drivers.

R: I am a Treasury Analyst preparing month-end reporting. You are a variance analysis assistant.

A: [Paste two datasets: Forecast by category | Actual by category. Categories: Client receipts, Supplier payments, Payroll, Tax, Intercompany, Other]

C: Calculate variance as Actual minus Forecast. Positive = more cash than expected. Do not speculate on reasons for variance. Present facts only.

E: Table: Category | Forecast | Actual | Variance (EUR) | Variance (%). Sorted by absolute variance descending. Below the table: list the top 3 drivers with their impact.

T: Calculate the liquidity gap for each time bucket based on the asset and liability maturity data below. Flag any bucket where the cumulative gap is negative.

R: I am a Group Treasurer reviewing liquidity risk. You are a liquidity analysis assistant.

A: [Paste: Instrument | Type (Asset/Liability) | Currency | Amount | Maturity bucket (O/N, 1W, 1M, 3M, 6M, 12M)]

C: Treat all amounts in reporting currency (EUR). If FX conversion is needed, I will provide rates separately. Do not assume any rollover of maturing instruments.

E: Table: Bucket | Assets Maturing | Liabilities Maturing | Gap | Cumulative Gap | Status (OK / NEGATIVE). Include a one-line assessment: is overall liquidity position comfortable, tight, or critical.

T: Based on the current cash position and upcoming payment obligations, calculate the funding gap for the next 5 business days. Recommend the minimum drawdown amount needed.

R: I am a Treasury Manager planning short-term borrowing. You are a funding planning assistant.

A: Current position: [amount by currency]. Upcoming payments: [Date | Amount | Currency | Priority (mandatory/deferrable)]. Available credit facility: [amount, currency, rate].

C: Mandatory payments cannot be deferred. Maintain a minimum buffer of EUR 200,000 after all mandatory payments. Round funding needs up to nearest EUR 100,000.

E: Day-by-day table: Date | Opening | Mandatory Outflows | Deferrable Outflows | Inflows | Closing | Funding Needed. Summary: total funding required, recommended drawdown date, estimated interest cost.

T: Consolidate the FX exposure data below. For each currency pair, calculate: total exposure, hedged amount, unhedged amount, hedge ratio. Flag any currency pair where hedge ratio is below 75% (our policy minimum).

R: I am a Treasury Manager reviewing the group FX position. You are an FX exposure analysis assistant.

A: [Paste: Entity | Currency Pair | Exposure Amount | Direction (Pay/Receive) | Hedged Amount | Hedge Instrument (Forward/Option/None)]

C: Net exposures within the same entity and currency pair before calculating group totals. Do not net across different entities unless they are in the same netting agreement. Do not recommend specific hedging actions.

E: Summary table: Currency Pair | Gross Exposure | Netted Exposure | Hedged | Unhedged | Hedge Ratio | Policy Compliant (Y/N). Separate section listing all non-compliant pairs.

T: Compare the FX forward rate quotes from Bank A and Bank B for EUR/USD. For each tenor, calculate the spread between the two banks and identify which bank offers a better rate.

R: I am a Group Treasurer evaluating counterparty pricing. You are an FX pricing analysis assistant.

A: [Bank A rate sheet: Tenor | Bid | Ask | Mid] [Bank B rate sheet: Tenor | Bid | Ask | Mid] [Current ECB mid-market rate for reference]

C: Compare ask rates for buy-side and bid rates for sell-side. Flag any rate that deviates more than 15 basis points from the ECB mid-market reference. This is analysis only, not a recommendation to trade.

E: Table: Tenor | Bank A Mid | Bank B Mid | Spread (bps) | Better Bank | Deviation from ECB Mid. Include a summary: which bank is more competitive overall and on which tenors.

T: For each hedge in the portfolio below, calculate the P&L offset between the hedge instrument and the underlying exposure. Assess whether the hedge is effective (offset ratio between 80% and 125%).

R: I am a Treasury Analyst performing quarterly hedge effectiveness testing. You are a hedge accounting analysis assistant.

A: [Paste: Hedge ID | Underlying Exposure | Hedge Instrument | Notional | Original Rate | Current Rate | MTM Value]

C: Use the dollar-offset method. Do not apply regression analysis. Flag hedges outside the 80-125% effectiveness band. Do not suggest accounting treatments.

E: Table: Hedge ID | Underlying Change | Hedge Change | Offset Ratio | Effective (Y/N). Summary: count of effective vs ineffective hedges, total portfolio effectiveness.

T: Review the current FX hedge portfolio against our treasury policy parameters. Flag any position that breaches policy.

R: I am a Treasury Manager conducting a policy compliance review. You are a compliance checking assistant.

A: [Current portfolio: Deal ID | Currency | Tenor | Instrument | Counterparty | Notional] [Policy rules: max tenor 12M, min hedge ratio 75%, approved instruments: forwards and options only, max counterparty concentration 40%]

C: Apply each rule independently. A single deal can have multiple breaches. Do not suggest corrective actions. Present facts only.

E: Breach report table: Deal ID | Rule Breached | Policy Limit | Actual Value | Severity (Critical/Warning). Summary: total breaches by type, overall compliance score (% of deals compliant).

T: Analyze this bank statement and flag all transactions that meet any of these criteria: (a) amount exceeds EUR 10,000, (b) does not match any known recurring transaction, (c) description contains unusual keywords. Categorize each flagged item.

R: I am a Senior Treasury Analyst performing daily bank statement review. You are a transaction analysis assistant.

A: [Paste MT940 content or CSV extract]. Known recurring transactions: [list of description patterns and typical amounts, e.g., "RENT - EUR 15,000 monthly", "PAYROLL - EUR ~180,000 monthly"]

C: Do not skip any transaction above the threshold. If a transaction partially matches a known pattern but the amount differs by more than 10%, flag it as AMOUNT MISMATCH. Do not invent descriptions.

E: Table: Date | Reference | Amount | Direction | Category (Expected/Unexpected/Amount Mismatch/Investigate). Sorted by amount descending. Summary: total flagged count, total flagged value, % of statement value flagged.

T: Match transactions from the bank statement against the internal ledger entries. Use amount, date (within 2 business days tolerance), and reference as matching criteria.

R: I am a Treasury Analyst performing month-end reconciliation. You are a reconciliation matching assistant.

A: [Bank statement: Date | Reference | Amount | Description] [Ledger entries: Date | Reference | Amount | GL Account | Description]

C: A match requires: same amount (exact), date within 2 business days, and either matching reference OR matching description keywords. Do not force matches. If uncertain, classify as POSSIBLE MATCH with confidence score.

E: Three sections: (1) Matched items table: Bank Ref | Ledger Ref | Amount | Match Type (exact/fuzzy). (2) Unmatched bank items. (3) Unmatched ledger items. Summary: matched %, unmatched value both sides.

T: Extract all fee-related transactions from this bank statement. Categorize them by fee type. Compare each against the agreed fee schedule and flag any overcharges.

R: I am a Treasury Manager reviewing quarterly bank costs. You are a bank fee analysis assistant.

A: [Bank statement with fee transactions]. [Agreed fee schedule: Fee Type | Agreed Rate/Amount | Billing Frequency]

C: Only analyze transactions that are clearly fees (maintenance, wire, SWIFT, FX margin, etc.). If a transaction is ambiguous, list it separately as UNCLASSIFIED. Calculate overcharge as Actual minus Agreed.

E: Table: Date | Fee Type | Actual Amount | Agreed Amount | Difference | Overcharged (Y/N). Summary: total fees paid, total agreed amount, total overcharge, % savings opportunity. List top 3 overcharge items.

T: Validate this payment file for errors before bank submission. Check: duplicate payment references, missing IBANs, amounts that do not match the approved payment list, dates in the past, and total amount versus the control total.

R: I am a Treasury Operations Analyst preparing a payment run. You are a payment file validation assistant.

A: [Paste payment file content or CSV]. Control total: EUR [amount]. Approved payment list: [Reference | Beneficiary | Amount]

C: Do not modify the file. Only report errors. Classify each error as BLOCKING (must fix before submission) or WARNING (review recommended). Do not approve or reject the file.

E: Validation report: (1) Summary: total payments, total amount, matches control total Y/N. (2) Error table: Row | Field | Error Type | Severity | Detail. (3) Pass/Fail status with count of blocking errors.

T: Draft a weekly treasury report for the CFO covering: (1) cash position summary, (2) FX exposure update, (3) notable events this week, (4) outlook for next week.

R: I am a Treasury Manager. You are a treasury report drafting assistant. The CFO reads quickly and wants the key points in under 300 words.

A: This week's data: [Cash position by entity/currency] [FX exposure summary] [Notable events: e.g., new facility signed, large payment processed, rate movement] [Next week: upcoming maturities, expected large flows]

C: Keep total under 300 words. Use professional tone. Do not include raw data tables in the body. Use bullet points only for notable events. No recommendations, only observations.

E: Email format with sections: (1) Cash Position (2-3 sentences), (2) FX Update (2-3 sentences), (3) Notable Events (3-5 bullet points), (4) Next Week Outlook (2-3 sentences). Subject line included.

T: Draft the quarterly treasury section for the board pack. Include: KPI summary, cash and liquidity overview, FX risk summary, key actions taken, and risk outlook.

R: I am the Group Treasurer presenting to the Board. You are a board reporting assistant. The audience is non-treasury directors who need clear, jargon-free summaries.

A: [This quarter's KPIs: average cash balance, peak/trough, weighted average investment yield, FX hedge ratio, bank facility utilization] [Key events: facility renewals, policy changes, market events] [Comparison vs. prior quarter]

C: No jargon without explanation (e.g., "hedge ratio" should include a brief parenthetical). Max 2 pages equivalent. Do not include raw numbers without context. Every metric needs a trend indicator (up/down/flat vs prior quarter).

E: Structured sections: (1) Dashboard KPIs (6-8 metrics with trend arrows), (2) Cash & Liquidity narrative (one paragraph), (3) FX Risk narrative (one paragraph), (4) Key Actions (3-5 bullets), (5) Outlook & Risks (one paragraph).

T: Write the month-end narrative commentary explaining the key cash flow movements, balance changes, and notable treasury events for [month].

R: I am a Treasury Analyst writing the commentary section. You are a financial narrative assistant. Target audience: Finance Director and Treasury Manager.

A: [Month's data: Opening vs closing balance by entity, major inflows/outflows with descriptions, FX impact, any facility drawdowns/repayments]

C: Explain movements factually. Attribute changes to specific drivers (e.g., "The EUR 2.1M decrease in Entity A was driven by the quarterly tax payment of EUR 1.8M and supplier settlement of EUR 0.3M"). Do not speculate on future movements.

E: 200-250 word narrative. Three paragraphs: (1) Overall position change, (2) Key drivers, (3) Notable items requiring attention. No tables in the narrative itself.

T: Calculate the following treasury KPIs from the data provided: (1) Days Cash on Hand, (2) Cash Conversion Cycle (DSO + DIO - DPO), (3) Facility Utilization %, (4) FX Hedge Ratio, (5) Weighted Average Investment Yield, (6) Forecast Accuracy (MAPE).

R: I am a Treasury Analyst updating the monthly dashboard. You are a KPI calculation assistant.

A: [Relevant data for each KPI: total cash, average daily operating expenses, DSO/DIO/DPO days, total facility amount and drawn amount, FX exposure and hedged amounts, investment portfolio with yields and weights, forecast vs actual by category]

C: Use standard formulas. Show the formula used for each KPI. Round to 2 decimal places. If any input data is missing, flag the KPI as INCOMPLETE rather than estimating.

E: Table: KPI | Formula Used | Value | Prior Month | Change | Status (Green/Amber/Red based on: Green = improved or stable, Amber = slight deterioration, Red = significant deterioration or threshold breach).

T: Draft a Request for Proposal for [cash management services / FX execution / credit facility] to be sent to 3-4 banks.

R: I am a Group Treasurer issuing a competitive RFP. You are a treasury communication assistant.

A: Company profile: [industry, revenue, number of entities, countries of operation]. Current setup: [existing banks, volumes, pain points]. Requirements: [specific services needed, SLA expectations, technology requirements, pricing structure preference]

C: Keep professional and neutral tone. Do not favor any bank. Include clear evaluation criteria and timeline. Do not include confidential financial details beyond what is needed for banks to price competitively.

E: Structured RFP document: (1) Introduction and company overview, (2) Scope of services, (3) Detailed requirements, (4) Pricing template (banks to fill), (5) Evaluation criteria with weightings, (6) Timeline and process, (7) Submission instructions. Target: 3-4 pages.

T: Draft an email to our relationship manager at [Bank] requesting a fee review based on the analysis showing overcharges and market benchmarks.

R: I am a Treasury Manager with a 5-year relationship with this bank. You are a business communication assistant. Tone: firm but collaborative.

A: [Overcharge findings: fee type, agreed vs actual, total overcharge amount]. [Market benchmark data if available]. [Our total business with this bank: transaction volumes, deposit balances, facility size]

C: Do not threaten to move banking relationship. Frame as partnership review. Include specific data points but do not share our full fee analysis. Suggest a meeting rather than demanding immediate credits.

E: Email format. Subject line. 200-250 words. Structure: (1) Acknowledge relationship, (2) Note the fee review findings (specific examples), (3) Reference market benchmarks if available, (4) Request a meeting to discuss, (5) Propose timeframe.

T: Draft a formal letter to [Bank/Agent] requesting an amendment to our [revolving credit facility / term loan]. Amendment type: [covenant waiver / maturity extension / limit increase / pricing reset].

R: I am the Group Treasurer making a formal request to our lending bank. You are a treasury communication assistant. Tone: formal, structured, compliant.

A: [Current facility details: amount, maturity, key covenants]. [Reason for amendment: business context, financial position]. [Proposed terms: what we are requesting specifically]

C: Do not disclose information beyond what is necessary. Include standard legal caveats (this letter does not constitute a binding commitment). Reference the credit agreement by date and parties. Do not speculate on the bank's likely response.

E: Formal letter format: (1) Reference to existing facility agreement, (2) Amendment request with specific details, (3) Business rationale (brief), (4) Proposed timeline, (5) Request for confirmation. Include appropriate sign-off and legal disclaimer. Target: 1-2 pages.