Blog
PRA regulation changes in PS9/24
The near-final PRA Rulebook PS9/24 published on 12 September 2024 includes substantial changes in credit risk regulation compared to the Consultation Paper CP16/22. While these amendments
Find out moreAs businesses continue to face challenges and uncertainty, it’s time to pick up the pace of change. And to do this corporate treasury requires a new roadmap.
This article highlights key points mentioned in our whitepaper: Treasury 4.x - The age of productivity, performance and steering. You can download the full whitepaper here.
Tectonic geopolitical shifts leading to fragile supply chains, inflation, volatility on financial markets and adoption of business models, fundamental demographic changes leading to capacity and skill shortages on relevant labor markets – a perpetual stream of disruption is pushing businesses to their limits, highlighting vulnerabilities in operations, challenging productivity, and leading to damaging financial consequences. Never has there been a greater need for CFOs to call on their corporate treasury for help steering their business through the persistent market and economic volatility. This is accelerating the urgency to advance the role of treasury to perform this broadened mandate. This is where Treasury 4.x steps in.
Treasury deserves a well-recognized place at the CFO's table - not at the edge, but right in the middle. Treasury 4.x recognizes the measurable impact treasury has in navigating uncertainty and driving corporate success. It also outlines what needs to happen to enable treasury to fulfil this strategic potential, focusing on three key areas:
1. Increasing productivity: Personnel, capital, and data – these three factors of production are the source of sizeable opportunities to drive up efficiency, escape an endless spiral of cost-cutting programs and maintain necessary budgets. This can be achieved by investing in highly efficient, IT-supported decision-making processes and further amplified with analytics and AI. Another option is outsourcing activities that require highly specialized expert knowledge but don’t need to be constantly available. It’s also possible to reduce the personnel factor of production through substitution with the data factor of production (in this context knowledge) and the optimization of the capital factor of production. We explain this in detail in Chapter 4 – Unlocking the power of productivity.
2. Performance enhancements: Currency and commodity price risk management, corporate financing, interest rate risk management, cash and liquidity management and, an old classic, working capital management – it’s possible to make improvements across almost all treasury processes to achieve enhanced financial results. Working capital management is of particular importance as it’s synonymous with the focus on cash and therefore, the continuous optimization of processes which are driving liquidity. We unpick each of these performance elements in Chapter 5 – The quest for peak performance.
3. Steering success: Ideologically, the door has opened for the treasurer into the CFO’s room. But many uncertainties remain around how this role and relationship will work in practice, with persistent questions around the nature and scope of the function’s involvement in corporate management and decision-making. In this document, we outline the case for making treasury’s contribution to decision-making parameters available at an early stage, before investment and financing decisions are made. The concept of Enterprise Liquidity Performance Management (ELPM) provides a more holistic approach to liquidity management and long-needed orientation. This recognizes and accounts for cross-function dependencies and how these impact the balance sheet, income statement and cash flow. Also, the topic of company ratings bears further opportunities for treasury involvement and value-add: through optimization of both tactical and strategic measures in processes such as financing, cash management, financial risk management and working capital management. These are the core subjects we debate in Chapter 6 – The definition of successful steering.
The foundations for a more strategic treasury have been in place for years as part of a concept which is named Treasury 4.0 . But now, as businesses continue to face challenges and uncertainty, it’s time to pick up the pace of change. And to do this corporate treasury requires a new roadmap.
The near-final PRA Rulebook PS9/24 published on 12 September 2024 includes substantial changes in credit risk regulation compared to the Consultation Paper CP16/22. While these amendments
Find out moreThe ECB Banking Supervision has identified deficiencies in effective risk data aggregation and risk reporting (RDARR) as a key vulnerability in its planning of supervisory priorities for the
Find out moreRecently, Zanders' own Sander de Vries (Director and Head of Zanders’ Financial Risk Management Advisory Practice) and Nick Gage (Senior VP: FX Solutions at Kyriba) hosted a webinar. During
Find out moreThe Right Payment Orchestration Strategy: A Critical Factor for Success The digitalization and globalization of payment infrastructures have significantly impacted businesses in
Find out moreIn our previous article 'Navigating the Financial Complexity of Carve-Outs: The Treasury Transformation Challenge and Zanders’ Expert Solution' we outlined that in a carve-out, the TOM for
Find out moreIn today's dynamic economic landscape, optimizing portfolio composition to fortify against challenges such as inflation, slower growth, and geopolitical tensions is ever more paramount. These
Find out moreEffective liquidity management is essential for businesses of all sizes, yet achieving it is often challenging. Many organizations face difficulties due to fragmented data, inconsistent
Find out moreExploring S/4HANA Functionalities The roundtable session started off with the presentation of SAP on some of the new S/4HANA functionalities. New functionalities in the areas of
Find out moreAccurately attributing changes in counterparty credit exposures is essential for understanding risk profiles and making informed decisions. However, traditional approaches for exposure
Find out moreHowever, CCR remains an essential element in banking risk management, particularly as it converges with valuation adjustments. These changes reflect growing regulatory expectations, which were
Find out moreThe timelines for the entire exercise have been extended to accommodate the changes in scope: Launch of exercise (macro scenarios)Second half of January 2025First submission of results to
Find out moreWithin the field of financial risk management, professionals strive to develop models to tackle the complexities in the financial domain. However, due to the ever-changing nature of financial
Find out moreAddressing biodiversity (loss) is not only relevant from an impact perspective; it is also quickly becoming a necessity for financial institutions to safeguard their portfolios against
Find out moreSAP highlighted their public vs. private cloud offerings, RISE and GROW products, new AI chatbot applications, and their SAP Analytics Cloud solution. In addition to SAP's insights, several
Find out moreSAP In-House Cash (IHC) has enabled corporates to centralize cash, streamline payment processes, and recording of intercompany positions via the deployment of an internal bank. S/4 HANA
Find out moreHistorically, SAP faced limitations in this area, but recent innovations have addressed these challenges. This article explores how the XML framework within SAP’s Advanced Payment Management
Find out moreDespite the several global delays to FRTB go-live, many banks are still struggling to be prepared for the implementation of profit and loss attribution (PLA) and the risk factor eligibility
Find out moreIn a world of persistent market and economic volatility, the Corporate Treasury function is increasingly taking on a more strategic role in navigating the uncertainties and driving corporate
Find out moreSecurity in payments is a priority that no corporation can afford to overlook. But how can bank connectivity be designed to be secure, seamless, and cost-effective? What role do local
Find out moreIn brief Despite an upturn in the economic outlook, uncertainty remains ingrained into business operations today. As a result, most corporate treasuries are
Find out moreIn a continued effort to ensure we offer our customers the very best in knowledge and skills, Zanders has acquired Fintegral.
In a continued effort to ensure we offer our customers the very best in knowledge and skills, Zanders has acquired RiskQuest.
In a continued effort to ensure we offer our customers the very best in knowledge and skills, Zanders has acquired Optimum Prime.
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More Information