In an environment of heightened volatility, treasurers need to ramp up but also prioritise their risk management activities. Using transactional solutions alongside financial market instruments can be a valuable way of simplifying risk management for non-core currencies, enabling treasurers to focus on core risks and contribute to business success.
Treasurers are constantly challenged to be more efficient and innovative in driving forward the treasury strategies that are aligned with the underlying business, supporting working capital goals and embracing new technologies. But how best for companies to thrive in this age of disruption?
Is spending tens of thousands on a vendor solution to compute Cash-Flow-at-Risk really necessary? Vincent Delort, Japan Tobacco International, proves that a low-cost, in-house solution using Excel can be just as effective – including the precise Excel formulae used.
Closer collaboration across multiple functions should improve the information flowing to the treasurer and CFO, and enable them to better communicate financial performance to investors in a way that helps them understand the risks a company faces.
Visualising risk using dashboards that bring together data from across the enterprise, and modelling the impact of different market and hedging scenarios is fast becoming a priority for treasurers. The Editor reports on the findings of a recent TMI webinar.
Managing risk is a priority for treasurers, but methods are changing. Market volatility and sensitivity to global political events, along with new technology and disruptive business models continue to impact business strategy and external market trends.