I recently attended EuroFinance's annual flagship conference, International Cash & Treasury Management, in Copenhagen, Denmark. The conference provided a great platform to launch a new Economist Intelligence Unit (EIU) report, Financing the Fragile Economic Recovery, sponsored by Deutsche Bank. A special session brought together leading corporate treasury executives to discuss how global corporate treasurers are navigating new risks and opportunities for growth. The session was held under Chatham House rules—hence no direct quotations in this article.

The session discussed the key issues covered in the report: key macro risks and risk-management strategies; funding and investment strategies; the impact of regulations on treasury operations; technology as a treasury enabler; and the changing role of the treasurer. The report was based on a global survey of 300 corporate treasurers, CFOs and other senior finance executives. The key survey findings are summarised in the infographic below.

The session provided a good opportunity for senior treasury professionals to share their own experiences on the topics covered in the survey. The main points discussed during the session are highlighted below.

Macro risks and risk-management strategies

Panelists agreed with our survey results that highlighted that strong economic growth is hard to find anywhere in the world at the moment. Although US growth in the second quarter of this year was recently revised upwards, weakness in other regions—notably the euro zone and China—hampers the global growth outlook. Panelists expressed the concern that slow global growth was becoming "the new normal". The key is to analyse what weak growth means for the structure of the business. How can business models be adapted to cope with this new reality?

Several panelists agreed that flexibility in the business model was important—business models had been too static in the past. The focus should be on strategic markets for long-term growth as well as simpler business models in non-strategic places. Panelists stressed the need to make the business less reliant on overall economic conditions. And—in a world of slow global growth—companies have to find ways to take market share in order to expand.

Funding and investment strategies

The abundance of excess cash came up as a major issue in our survey and at the session. Lack of growth prospects reduce incentives for capital expenditures and thus contribute to cash hoarding. Moreover, panelists also mentioned that they use excess cash to repay debt early.

Panelists echoed what we found in our survey: multinationals themselves do not tend to face any major funding issues. However, one panelist warned that even multinationals should not be too complacent about their own funding situation as you have to start worrying about risk management before a potential crisis hits, rather than when it has already arrived. Moreover, post-financial crisis multinational companies increasingly worry about the finances of their suppliers and supply chains that may be less financially secure than themselves.

Another issue mentioned was the role of credit rating agencies in market volatility. A question that was raised was to what extent credit rating agencies may benefit from volatility.

The impact of regulations on treasury operations

Like our survey respondents, panelists said they face a rising regulatory burden, sometimes causing unnecessary strain on time and resources. A major worry is that companies are not adding sufficient new headcount and resources to deal with the rising regulatory burden.

One concern mentioned at the session was the onerous process of becoming compliant with new regulation, only for regulators to then delay the new rules; this sometimes means wasting money and other resources that have already been spent.

Some panellists did not question the noble intentions and purposes behind regulations, but they criticised the practicalities. In particular, the survey and session raised concerns about derivatives and central-clearing regulations, such as the European Market Infrastructure Regulation (EMIR) in Europe and the Dodd-Frank Act in the US. One key question is how to engage regulators about the unintended consequences of regulation.

Technology as a treasury enabler

Panelists also echoed our survey results on the growing importance of technology in supporting key treasury functions. Our survey found that a majority of respondents agree that partnering with financial technology (fintech) companies will increasingly reduce the treasury department’s reliance on traditional banks. One panelist highlighted that corporate treasurers do not really mind whether they deal with banks or fintech to meet their technology needs.

The changing role of the treasurer

As the session drew to a close, panellists were asked to conclude by highlighting their views on the changing role of the treasurer. Our survey revealed that corporate treasurers, CFOs and other senior finance executives are convinced that the treasurer's role is becoming more strategic. Indeed, almost three-quarters of CFOs in our survey said that leadership teams increasingly consult corporate treasurers on strategic questions. Panelists agreed, highlighting the growing importance of visibility over cash across the business.

But one panelist also pointed out that the extent to which the treasurer's role becomes more strategic depends on the company. Companies with cash issues will naturally involve the treasurer more in strategic discussions, for example.

Our survey revealed some concerns among corporate treasurers about their company boards' lack of interest in the corporate treasury function and some issues with integration of the function into the wider business. However, progress has been made on that front, and one panelist summed this up well by saying that corporate treasury is "no longer an island" within the business.

For more details on the Financing the Fragile Economic Recovery programme, sponsored by Deutsche Bank, click here.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.