Foreign currency
transactions – a major
concern for company
treasurers
A recent study of corporate cash management trends indicates that management of global
operations is one of the major concerns for treasury professionals. Is this the result of the
growing globalisation of companies?
T
he 2015 edition of the Global
Treasury Survey by consultants
Deloitte focuses on the everyday
activities of treasury professionals
in large international groups. And it comes
up with some interesting conclusions…
Treasury management
as a strategic tool
A growing number of corporate treasury
officials believe that they have been given
a clear strategic mandate by their CFO.
Alongside the more standard tasks (liquidity
management, access to capital markets,
etc), a vast majority of them now indicate
that they are expected to:
- show active involvement in defining risk
management policies;
- provide strategic advice on the company’s
business management;
Source: www.ing.be/business
-
give added value presence alongside
the CFO in mergers and acquisitions
operations;
-
display a leadership role in setting up
initiatives to improve working capital
management.
Global operations
– a headache for
treasurers?
Half of those questioned stated that
they were concerned about aspects of
global treasury transactions, whether this
was the management of foreign exchange
fluctuations or cash repatriation. More than
40% stated that they were challenged by
a lack of visibility into global operations.
Treasury management systems were of
particular concern. In fact many companies
had to integrate data from several different
ERPs into
IT tools.
their
treasury
management
Standardising systems
So, it is hardly surprising that nearly half
(47%) of companies questioned stated that
they were working on initiatives to centralise
and simplify ERP systems and to improve
integration into treasury applications. This
transformation is in fact the second leading
priority in current initiatives. However, the
major concern of treasurers still remains cost
cutting.