The 'virtual reality' of treasury - Global Corporate Treasury Benchmarking Survey 2017
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.
Key findings
67% of people involved in treasury processes do not report directly to the treasurer
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.
Cash flow forecasting is a priority
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.
Rising cybersecurity threats mean treasurers need to take action to safeguard assets
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.
