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Treasury in the Crisis
Put to the test – Can the crisis make treasury stronger?
The PwC Global Treasury Survey 2010
by Sebastian di Paola and Damien McMahon, PricewaterhouseCoopers
In the 2010 PwC Global Treasury Survey we examine treasury’s reaction to the financial crisis, covering both the initial collapse of liquidity and the economic downturn that followed. Were treasury teams prepared, how effectively did they respond and what are the lessons for the future? With the impact of the crisis thrusting treasurers into the spotlight, how has this attention affected their influence and status within the business and how can they capitalise on the opportunities this presents?
This article contains highlights of the survey. A complete version of the survey report is available directly from PricewaterhouseCoopers.
John F Kennedy once noted that the ‘Chinese use two brush strokes to write the word crisis. One brush stroke stands for danger, the other for opportunity. In a crisis, be aware of the danger, but recognise the opportunity’. Kennedy’s perceptive observation would provide an apt description of the current state of the treasury profession.
Dealing with the crisis, including the impact on funding, liquidity management, commodity price volatility and financial counterparty risk has provided the sternest possible test for treasury teams. Yet it has also brought the work of treasury to the forefront of the boardroom agenda and therefore created a once-in-a-career opportunity to raise the status and influence of the treasury within the business.
This year’s PwC Treasury Survey has aimed to understand how the global financial crisis and subsequent economic recession have affected the treasury function. Were treasurers prepared? How did they react during the crisis? What will be the new shape of treasury post-crisis?
We are very grateful to the 585 individuals who responded from 26 different countries across all five continents. These respondents represented 330 multinational companies covering all sectors and with turnovers ranging from less than EUR1bn to over EUR10bn.
