IntroductionSince 2011, WIELTEC has supported a diverse range of corporate clients across industries through in-depth operational and financial scans. Our work focuses on identifying structural inefficiencies, control gaps, and misaligned incentives that often go unnoticed. The following cases illustrate some of the themes we’ve encountered.

‍1. Misalignment of Trader Incentives

‍The issue first appeared as a success story within trading desks. Certain commodity traders created discrepancies in the terms of Letters of Credit to unofficially grant counterparties extended payment periods. These changes boosted the traders’ personal profit and loss statements in the short term, making their performance appear stronger than it truly was. While individual results looked impressive, the broader financial health of the company began to suffer.

The extended payment terms delayed incoming cash flows, reducing liquidity and forcing the corporate treasury to borrow more to cover shortfalls. This increase in borrowing led to higher interest expenses, a burden that was absorbed at the group level rather than reflected in the trading books. What seemed like a clever way to enhance trading results turned out to be a case of misaligned incentives. The traders benefited through higher bonuses, while the company paid the price in increased costs and reduced financial flexibility.Once the issue was identified, corrective action was taken. Trade terms were standardized, bonus structures were revised, and in some cases, clawbacks were implemented. These measures led to measurable savings through reduced interest costs and more transparent performance reporting.

‍2. Lack of Automation in Treasury Accounting

‍For some time, the Treasury team avoided using available automation features within the financial system, such as automatic journal entries for daily foreign exchange transactions and monthly interest accruals. The team argued that these were the responsibility of the Accounting function, which led to a continuation of manual processes that could have been eliminated.  Simple, repeatable tasks consumed hours each week. The situation was eventually addressed by configuring the system to automate these processes.

Although there was an initial investment involved in implementation, the change brought ongoing savings in both time and cost. Automation allowed the team to operate more efficiently and significantly reduced the likelihood of errors, freeing up resources for strategic initiatives.

‍3. Bank Signatory Controls and Compliance Gaps

‍A routine review of bank account mandates revealed a control gap. Several individuals who had already left the organization were still listed as authorized signatories on various bank accounts. Some of these ex-employees retained the ability to instruct payments of up to EUR 100,000.  This finding raised concerns about both fraud risk and regulatory compliance. The exposure was serious and required swift action. All unauthorized signatories were promptly removed, and the bank mandates were updated.

Beyond the immediate fix, the incident prompted a broader reinforcement of internal controls. The company introduced a formal review cycle for bank signatories and tightened governance around mandate management. These changes significantly reduced the risk of future exposure and ensured compliance with internal policies and external regulations.