Risk management within an organisation is a corporate treasurer’s raison d’être. At
the same time, the job of corporate treasury is to create a suitable capital structure
of debt and equity to fund the business. Hence, striking a balance between cost and
risk is fundamental. This study explores the key macro and financial risks that corporate
treasurers of large multinational corporations face and how they intend to manage
them over the next 12 months. It examines what the evolving risk landscape means for
the day-to-day role of the treasurer, the skill set required of treasury professionals, and
the technological trends within corporate treasury.
Key findings include:
- Uncertainty about economic growth is treasurers’ top concern worldwide
- Survey respondents seem fairly neutral about the fallout from the recent vote by British citizens to leave the EU
- Low or even negative interest rates are triggering significant policy changes in cash management
- Despite the intention to reduce cash holdings, the overwhelming majority of survey respondents still say they maintain fairly large amounts of excess cash
- Regulatory developments continue to keep corporate treasurers busy
- Respondents welcome technological change but do not necessarily embrace it
- Treasury functions are expanding their remits, especially into risk management and capital allocation
