What are the areas that treasurers are focusing on in these uncertain times and what challenges are they experiencing?
In our most recent survey, we spoke with nearly 50 businesses across 11 plus sectors including Energy Utilities and Telco, Retail and Manufacturing, Food and Agri, Aviation Finance and Tech and Media to understand the evolving trends in treasury and enable treasurers to evaluate their awareness and progress in these areas.
We uncovered their biggest challenges from rising interest rates and inflation, FX volatility, and treasury systems and gained insights into their biggest priorities in this volatile market.
Key takeaways
Cash management
Cash forecasting and liquidity management are the top priorities of surveyed corporate treasurers. Our survey indicates that the organisations that have adopted a cashflow forecasting tool appear to have higher confidence in the cashflow forecasting accuracy over longer horizons.
As corporates adopt technology solutions to optimise their cash and liquidity management, the focus should be to evaluate and implement an integrated solution that meet the long term objectives of the treasury function.
Financial risk management
Rising interest rates and inflation has been a prominent challenge faced by corporate treasurers. With significant changes to the market environment, corporate treasurers are required to constantly be ahead of the curve, evolve their risk management approach and ensure that ‘silent’ risks are analysed.
Treasury transformation
Enhancing treasury technology was among the key priorities for corporate treasurers.
As organisation progress along their treasury transformation journey, treasurers should ensure they perform a thorough evaluation of how a tool/system fits into the larger technology landscape of the organisation and select a fit-for-purpose future proof tool to get the most value from their technology investment.
Environment, Social and Governance (ESG)
Our survey indicates that several corporate treasuries have started incorporating ESG initiatives in their treasury decision making.
While there is still a lot to achieve, it can be noted that treasurers need to focus on awareness about the various developments in the ESG space within and external to the organisation to be able to champion the organisation’s ESG agenda from treasury perspective.
Get in touch
If you have any queries on the results of our survey, or their potential impacts for your business, please contact Francisco Jiminez of our Treasury Consulting team.
We'd be delighted to hear from you.
Francisco Jimenez
Principal, KPMG Financial Instruments Lead
KPMG in Ireland