Top 5 Challenges Faced By Global Corporate Treasurers In Managing FX Risk


top-5-challenges-faced-by-global-corporate-treasurers-in-managing-fx-risk

Source: Deloitte 2015

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Fintech can offer benefits to Treasury Departments of Private Firms


According to data from the Association of Corporate Treasurers and Kyriba, fintechs have an opportunity to provide small and medium-sized firms with treasury management solutions.

Fintech can offer benefits to Treasury Departments of Private Firms

Globally there is approximately one third of treasury departments at private firms that are still using spreadsheets to manage treasury processes, analysis, and reporting functions. This is quite a staggering number considering the risks involved in using such legacy technology. 36% of all firms’ surveyed (332 in total) primarily use spreadsheets, which increases to 43% once firms with turnover of $10 billion and over are discounted. Having worked in this industry for some time now, I can say from experience this is realistic and quite frightening indeed!

Here are some more insights into the data from this survey:

Smaller firms are most likely to use spreadsheets. 

  • 55% of firms with $0-$100 million turnover primarily use spreadsheets.
  • 30% use Treasury Management Systems (TMS).
  • 5% use the treasury module of an Enterprise Resource Planning (ERP) solution.

A significant proportion of mid-size firms use spreadsheets. 

  • 46% of firms with a turnover of $500 million-$1 billion use spreadsheets.
  • 31% use Treasury Management Systems (TMS).
  • 10% use the treasury module of an Enterprise Resource Planning (ERP) solution.
  • The percentage of mid-size and smaller firms which use TMS is surprisingly (and worryingly) similar.

The largest firms are least likely to use spreadsheets.

  • Only 9% of firms with over $10 billion in turnover use spreadsheets.
  • 59% use Treasury Management Systems (TMS).
  • Only 9% use the treasury module of an Enterprise Resource Planning (ERP) solution.

Some Advantages and Disadvantages:

  • Using spreadsheets involves manual processing which is inefficient and expensive.
  • Using spreadsheets also increases the risk of human error and fraud.
  • The barrier to adoption of treasury management solutions among small and medium-sized firms has historically been cost as these solutions tend to require expensive infrastructure and supplementary services.
  • Now with the disruption offered by Fintechs, we are beginning to see a switch. Fintechs can now offer small to medium sized firms a treasury management solution that is cloud-based, which implies they don’t require new infrastructure for data storage and processing.
  • Additionally, the cost of developing these solutions has decreased which makes it economical to design products meant for use by small and medium-sized businesses. Hence, we have more and more Fintechs penetrating this lucrative and legacy based market.
  • However, as with many other solutions and technologies offered by such Fintech firms in whatever space, concerns around security, data management and privacy are still very much prevalent. This is probably one of the main factors for the slow adoption by smaller to medium sized firms globally.
  • Also, as most smaller to medium sized firms (plus large enterprises to a certain extent) use legacy based systems that are integrated within their business processes, it will require a lot more time, effort and additional cost to adopt a TMS. This could also be a major deterrent.

What do you need to consider when establishing Corporate Governance for I.T. ?


CRYPTOKNOWLEDGE

A key strategic consideration for most senior IT executives in 2014 and over the next few years will be Corporate Governance for IT, or ‘IT Governance’.

As with my organisation, many firms procure key IT services from external providers, suppliers and vendors. This implies the need for a governance framework to control the delivery of IT services is becoming more and more crucial than ever before.

Here are a number of points to consider for establishing IT Governance in your organisation:

  1. Get your management ‘buy-in’ and ensure you have access to funding – This must to be one of the first steps in any improvement initiative.
  2. Launch a project or programme.
  3. Establish your ‘as is’ or current environment.
  4. Identify what you presently have in place.
  5. Define the ‘to be’ or future vision of what you want to attain and why.
  6. Identify and classify the gaps between…

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Top 10 Threats to Business Continuity (in 2014)


This year’s top ten threats to business continuity are:

  1. Unplanned IT and telecom outages;
  2. Cyber-attack;
  3. Data breach;
  4. Adverse weather;
  5. Interruption to utility supply;
  6. Fire;
  7. Security incident;
  8. Health and safety incident;
  9. Act of terrorism;
  10. New laws or regulations.

Source: Business Continuity Institute (BCI)

Venture Capital and Private Equity investors pour over $1.7B into the Cybersecurity Market


  • Geographically, of 491 private cybersecurity companies (surveyed by CB Insights in 2013), almost 3/4 are in the U.S.  
  • More non-U.S. companies are getting funding compared to previous years.
  • This increase in funding to non-U.S. companies could be due to the mistrust of U.S. cybersecurity firms or it could just be a short-term inconsistency.

cybersecuritygeos

What do you need to consider when establishing Corporate Governance for I.T. ?


A key strategic consideration for most senior IT executives in 2014 and over the next few years will be Corporate Governance for IT, or ‘IT Governance’.

As with my organisation, many firms procure key IT services from external providers, suppliers and vendors. This implies the need for a governance framework to control the delivery of IT services is becoming more and more crucial than ever before.

Here are a number of points to consider for establishing IT Governance in your organisation:

  1. Get your management ‘buy-in’ and ensure you have access to funding – This must to be one of the first steps in any improvement initiative.
  2. Launch a project or programme.
  3. Establish your ‘as is’ or current environment.
  4. Identify what you presently have in place.
  5. Define the ‘to be’ or future vision of what you want to attain and why.
  6. Identify and classify the gaps between your ‘as is’ and ‘to be’.
  7. Produce an IT Governance framework
  8. Develop a roadmap to get you from your ‘as is’ to your ‘to be’ scenario.
  9. Formally engage the stakeholders.
  10. Plan, manage and make the required improvements.
  11. Carry out reviews and provide the necessary reporting.

What is GRC?


“GRC is an abbreviation for Governance, Risk and Compliance.”

G represents Governance

Basically this means running your business as usual (BAU) and ensuring that things are done according to the standards, rules and regulations in the environment in which your business operates. It also means defining your expectations of what should be done in a clear and concise manner, so that everybody (employees, shareholders, public, partners, etc) knows how your company is run.

R represents Risk

In pretty much all that we do there is an element of risk. This is no different in running a business too. Risk becomes a method to help you both in protecting value i.e. what you have, and creating value, i.e. strategically growing your business or developing new products and services to existing ones.

C represents Compliance

Nowadays all companies need to abide by many laws and directives affecting businesses (as well as citizens). For compliance to add value and be effective, certain controls and limits should be in put into place to ensure that the compliance is transpiring. This might mean monitoring your company’s transactions or ensuring that your IT systems and services are in order. It might even simply mean that the same employee is not creating suppliers and deceitfully making payments out to their friend or family member. The C relates to laws such as Sarbanes-Oxley (SOX).

In actual fact, GRC is meant to aid growth in your business in the best possible way, and should thus be given high prominence in your strategic and operational goals.