Capturing the views of 220 treasurers and Chief Financial Officers (CFOs) worldwide, our latest global treasury benchmarking survey reveals that the success of the treasury profession is dependent on how well it adapts to - and operates in - an increasingly virtual environment.
Treasury’s scope continues to expand and is now a company-wide process – it no longer operates as a single ‘department’. With treasury processes becoming increasingly virtual, treasurers need to collaborate more with the business, shared services and banks and raise their game in IT security, valuation and financial risk management to succeed in today’s environment.
The traditional treasury team is changing with only a third of those involved in treasury processes reporting to a company’s treasurer. Increased outsourcing of back office and payment factory processes and more involvement with local finance teams for exposure reporting creates new complexities in implementing regulations, safeguarding liquidity and managing risks.
Given the broad responsibilities of treasury, combined with the low number of people involved and flat budgets, integration and automation will generally be the best strategy.
Cashflow forecasting is at the top of the treasury agenda for both CFOs and treasurers, with 42% ranking it as a priority. However, there are a number of basic issues that need resolution, including accuracy of data, data mapping and proper tooling, before treasurers can truly benefit from the features that enable proper predictive and scenario analysis.
Treasury typically “owns” payment infrastructures and bank communication – both of which are key infrastructures and cannot be compromised. With cyber attacks and payment fraud regularly making headlines, treasurers must be vigilant in safeguarding financial assets.
It is worrying, therefore, that only 19% of treasurers list cybersecurity as a critical concern. By contrast, 45% of CFOs name cybersecurity as a priority, pointing to a significant misalignment in CFO and treasury agendas in this regard.
Sebastian di Paola
Global Corporate Treasury Leader
Tel: +41 58 792 9603
US/Americas Corporate Treasury Leader
Tel: +1 646 471 2787
Ian P Farrar
Tel: +852 2289 2313
Tel: +61 (2) 8266 1882